Compass ends Series G funding round with $370 million

Tech-enabled real estate listing marketplace startup for residential property professionals, Compass, has acquired $370 million in a Series G round, bringing its current valuation to $6.4 billion, as it continues its steady growth.

According to Fortune and the company’s Crunchbase profile, that’s up 45 percent from its $4.4 billion valuation when it raised its $400 million Series F last September. The round brings the company’s total funding to over $1.5 billion since it was founded in 2012 as Urban Compass. (It dropped the “Urban” in 2015, according to its Crunchbase profile). A mix of new and existing investors participated in this latest round including Canada Pension Plan Investment Board (CPPIB), Dragoneer Investment Group, Qatar Investment Authority (QIA) and the busy SoftBank Vision Fund.

In a press release, Compass said it plans to invest in “platform software and scaling operations, including continued expansion of its East and West coast product & engineering hubs.” It’s also planning to use its new capital to invest more in “cloud, mobile and AI.”

Compass said it is building an “end-to-end software platform” aimed at streamlining the buying and selling of homes. It also offers a concierge program that “fronts” customers money to do home improvements such as staging and painting.

Indeed, the company appears to be growing robustly with revenue surging over 250 percent in the second quarter compared to Q2 2018. (It did not provide specific revenue figures). A spokesperson explained that Compass now employs about 2,200 people, up from under 1,000 a year ago. Specifically, it’s tripled the size of its product and engineering team to over 300 employees since its last raise in September 2018. Currently, Compass has more than 300 offices across the country and a team of more than 13,000 agents that work as independent contractors.

Also since its last raise, Compass acquired Contactually, a cloud-based software company that has built a customer relationship management (CRM) system for the real estate industry. It’s also made a slew of new hires including tapping Joseph Sirosh, former CTO of AI at Microsoft and ex-VP of Advanced Technology at Amazon, to serve as its Chief Technology Officer. The company opened its first West Coast product and engineering “campus” in Seattle, Wash.

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