uawk Box. “We’re both.”
Warburg Realty s Clelia Peters said Compass has forced more traditional brokerages to get with the program.
Their tech focus has forced other brokerages to move more quickly in introducing tools and approaches that are good for the industry writ large, said Peters, who is also a co-founder of MetaProp. As brokerage owners, we should be focused first and foremost on what s best for our broker-customers.
Compass said it would use the SoftBank investment to turbo-charge its goal of being in every major U.S. city by 2020 — a target the company set earlier this year.
The firm, which has more than 2,100 agents, currently has offices in 11 regions, including New York, Los Angeles, San Francisco, Boston, Washington, D.C., Miami, Orange County, Calif., the Hamptons, Santa Barbara, Montecito and Aspen. It launched a Chicago office last week.
(Read all The Real Deal s coverage on Compass here.)
On CNBC, Reffkin said Compass is on track to be the “largest owner of real estate data globally and the No. 1 real estate tech company in the world” thanks to an end-to-end business platform for agents.
“That’s just not something brokerage firms are doing,” he said.
On paper at least, the cash infusion means Compass valuation has moved past that of Redfin, another firm that s billed itself as a technological messiah for real estate and raised significant venture capital before going public this summer. Redfin’s market cap was $2.04 billion as of Thursday morning.
Most signs now point to an IPO for Compass. At $2.2 billion, its size disqualifies most acquisition suitors, said Aarons, noting that the largest potential buyer in the real estate space — Realogy — has a market cap of $3.71 billion.
“It’s now basically IPO or bust for this company,” he said. But he questioned how quickly Compass is likely to go public given how much money they’re spending. “I don’t know IPO bankers who will take a company public that has to raise hundreds of millions of dollars every 12 months.”
Charlie O’Donnell, founder of Brooklyn Bridge Ventures, which makes seed and pre-seed investments, said he hopes the latest infusion allows some of Compass’ early employees to cash out. “This kind of capital means the company is going to try to take a huge swing for the fences, which is great for them,” he said. “But it s a different risk profile than for some early developer or designer who helped create a lot of initial value and has their whole net worth tied up in stock they can t do anything with.
Tags: compass, Residential Real Estate, softbank, Tech, venture capital
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