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Compass lands $450M from SoftBank

Startup now valued at $2.2B, sources say

From left: SoftBank's Masayoshi Son, Robert Reffkin and Ori Allon (Credit: Getty Images and Instagram)
From left: SoftBank's Masayoshi Son, Robert Reffkin and Ori Allon (Credit: Getty Images and Instagram)

Compass — the startup brokerage and fundraising machine — said Thursday that SoftBank will invest $450 million in what the New York City-based agency claims to be the biggest investment in a real estate tech company to date.

The funding gives Compass a total of $775 million in investor capital. Just last month, it raised $100 million at a $1.8 billion valuation.

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Sources said SoftBank’s investment values Compass at $2.2 billion, higher than tech-based Redfin, which made its public debut earlier this year and has a market cap just over $2 billion.

Compass will use the $450 million from the SoftBank Vision Fund to expand nationwide. This fall, CEO Robert Reffkin said the firm would have 20 percent market share in 20 major markets by 2020.

SoftBank is also a large backer of WeWork. It pledged to invest over $4 billion in the co-working company, which has a valuation of about $20 billion.

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