Fidelity values Compass at US$2b in real estate tech deal

San Francisco

A NEW York startup called Compass is persuading investors that it can reshape the home-buying process through the use of technology.

A dashboard showing neighbourhood data and a Pinterest-like app for organising home listings would make real-estate agents more productive and therefore, more profitable, the company said.

The pitch caught the attention of Fidelity Investments, which made a rare bet on a private company, valuing the business at US$1.8 billion, Compass said this week.

To others, though, Compass looks more like a traditional realty broker. It employs more than 2,000 agents, who take a percentage of the selling price and give 15 to 30 per cent to Compass.

It lures the industry's top talent with lavish signing bonuses and specialises in high-margin, luxury homes in upscale, …