Just a month-and-half after raising $100 million in new capital, Ori Allon, the Israeli founder and head of real estate tech company Compass, said on Thursday he nabbed another $450 million in new investment.
Compass newest investor is Japans SoftBank Vision Fund, which put its money into the company at a $2.2 billion valuation, bringing the total capital raised by Compass since its 2013 formation to $775 million. The previous round was led by U.S. investment fund Fidelity at a $1.8 billion valuation.
When we received the offer from Softbank, we knew it was a good opportunity for both side with terms we feel comfortable with, Allon told TheMarker. They understand what were capable of doing and we speak the same language. With their help, we can do over the next year what we had been planning to do over two or three years.
Compass search technology pairs people with homes that fit their needs, providing details to help evaluate neighborhoods and matching potential homebuyers with agents to complete a purchase. The company now employs 3,000 people in the U.S. and has plans to go global.
The most significant purchase in a persons life is real estate. We are interested in giving people the right information to make the decision when they have the information they need, said Allon.
Based in New York City, Compass said it would use the capital to expand to every major U.S. city and increase its investment in technology, launching last week in Chicago. Allon said the money may also be used to acquire other companies.
Allon, who is now executive chairman, formed Compass four years ago with CEO Robert Reffkin, a former Goldman Sachs executive and White House aide.
Unlike many overseas startups with Israeli founders, Compass doesnt have a research and development office in Israel. However, Jerusalem-born Allon retains a personal connection as chairman of the ownership group controlling basketball team Hapoel Jerusalem.
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