New York-based real estate startup Compass is raising yet another round of funding, this time at a valuation above $1 billion.
The new financing was led by Wellington Management Capital and brings the total capital raised to $210 million. Existing investors IVP, Thrive Capital and Founders Fund also participated in the round.
While there are a number of real estate sites including Zillow and Redfin, Compass aims to set itself apart by focusing on broker listings, for both rental and ownership opportunities. Instead of generating revenue through ads, Compass takes a cut of the transactions and claims it processes $7 billion annually.
Focusing on just a handful of markets including the Hamptons and Miami, Compass hopes to further its growth with the new cash.
“We are going to expand into new markets and continue developing transformative technologies, unmatched agent support and marketing resources to our agents and clients across the country,” founder and executive chairman Ori Allon tells TechCrunch.
Investor Todd Chaffee at IVP voiced high hopes for the company. “We believe that Compass will have a dramatic, transformative impact in the huge, antiquated real estate industry.”
But it is a very competitive landscape. From Trulia to RadPad, there are countless real estate sites and many renters would prefer to avoid brokers fees.
When asked if the company could ever IPO, Allon deflected. “Right now Compass has the singular focus of creating a more efficient, intelligent and transparent real estate experience for agents and consumers.”