Compass may use the funding to acquire companies that "can help accelerate its technological development", Mr. Allon added.
Compass, a real estate technology company, today announced that the SoftBank Vision Fund has agreed to invest $450 million, making it the largest real estate technology investment in USA history.
The infusion from the $93 billion venture vehicle - whose backers include the Japanese conglomerate SoftBank and Saudi Arabia's sovereign wealth fund - brings Compass' total capital raise to $775 million. Compass will use the funds to expand to every major USA city and increase its investment in technology to further support Compass agents and their clients.
Four weeks ago, Compass announced a $100 million funding round led by Fidelity Investments in a deal that valued the company at $1.8 billion.
While it employs traditional brokers, the main selling points of Compass are the leveraging of data to improve the efficiency of the real estate business along with a sleek mobile app for buyers and renters.
"The combination of technology and our partnership with top real estate agents who do outsized transaction volume will enable us to build the world's largest real estate technology platform", said Ori Allon, Founder and Executive Chairman of Compass. "Just last week, we launched in Chicago with the number one agent team in the State of IL, and we are continuing to gain momentum with top agents everywhere".
"Real estate is a huge asset class, but the sector has been relatively untouched by technology and remains inefficient and fragmented", SoftBank's Justin Wilson said in a statement. "With disruptive technology and unique data advantages, Compass is well-positioned for future growth in a sector that represents trillions in transaction volume". "There are enormous opportunities and interesting markets outside of the U.S".