Residential Brokerage Compass' "Technology Promise"

The Vision Fund’s $370 million investment in Compass valued the residential brokerage firm at $6.4 billion in the summer of 2019. This valuation is supported by a “technology promise” that the company can make its agents more effective and productive.

Realogy, with 300,000 agents to Compass’ 15,000 agents and $505 billion of transaction volume to Compass’ $88 billion, has a market value of $384 million.

It would seem this technology would need to bridge a massive gap. Skeptics are raising eyebrows. The article cites Susquehanna analyst Jack Micenko:

“They are a residential real estate brokerage, just like everybody else. They make their money the same way Realogy does and Re/Max does.”

Compass’ S-1 filing cites an increasingly familiar combination: a disruptive and global technology platform coupled with massive losses.

real estate venture capital
Source: Ben Walsh | "Real Estate Company Compass Struggles to Deliver on Big Technology Promise " | Barron's | 04/18/2020 | Visit