Compass costs on a scale, founders LinkedIn and Zynga to publish the hippo


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Compass business costs

Prior to its buzzing IPO, Compass offered investors a view of its finances through the S-1 filed 1st March.

Main points According to the 263-page document, Compass had sales of $ 3.7 billion last year, four times its sales of $ 884.7 million in 2018. Technology brokerage also lost $ 270.2 million in 2020, down from $ 388 million in 2019.

But one of the key ways is how much Compass has spent on growing to its current size: 19,000 agents with sales of $ 151.7 billion last year.

Since 2018, more than $ 300 million has been spent on the purchase of residential companies and technologies. Here’s a closer look at where most has been invested:

.3 $ 83.3 million for Pacific Union International, a San Francisco-based company with 1,700 agents and revenue of $ 14 billion
$ 70 million for Modus, title launch and custody
.2 $ 52.2 million for KVS Title, a title company in Washington, DC
$ 26.1 million for Contactually, a popular customer relationship manager
22 $ ​​22 million for Stribling (NYC’s 270 agent brokerage and $ 1.62 billion in sales), Alain Pinel Realtors (San Francisco firm with 1,300 agents) and Detectica (AI launch)
.5 $ 20.5 million for companies including Platinum Drive Realty (a company with 100 agents in New York), Conlon Real Estate (with 200 agents in Chicago) and Avenue Properties (with 110 agents in Seattle)
18. $ 18.9 million for Paragon Real Estate, a San Francisco company with 225 agents and $ 2.3 billion in revenue
6 $ 6 million for Lila Delman Real Estate, a luxury agency with 120 agents in Rhode Island
2 $ 2 million for Bold New York, an intermediary agency focused on leasing 120 agents

“$ 52 million is a lot of money, and CoStar’s shareholders and customers should ask themselves, who will end up with that account?”

– RentPath CEO Dhiren Fonseca to decide that CoStar has to pay a break-up fee following a failed RentPath solution

We’re opening more doors

With few homes on the market, Opendoor has a new goal: home buyers.

The company – whose core business is buying and selling homes – has launched a program that allows buyers to submit cash offers supported by Opendoor. “Market conditions are screaming right now,” said Tom Willerer, product director, Bloomberg News.

Opendoor is already the dominant player in iBuying, and was published last year after merging with a blank check company backed by investor Chamath Palihapitiya.

In its first call for earnings as a public company, Opendoor reported a 45 percent drop in revenue attributed to it. pause When buying a home in the first months of a pandemic.

The company generated sales of $ 2.6 billion last year, compared to $ 4.7 billion in 2019. It lost $ 286.8 million, compared to a loss of $ 339.2 million the previous year.

The real reason for Doma’s SPAC agreement worth $ 3

Following the upgrade of the archaic title insurance industry, Doma plans to continue with home appraisals, guarantees and other “high-friction” components of buying a home.

Startup, formerly States Title, entered into an agreement with Capitol Investment Corp. last week. by Mark Ein. The deal values ​​home at $ 3 billion (an increase of $ 623 million in May) and will launch $ 510 million in cash.

There it becomes interesting.

In the investment call, Capitol stated that it had signed the agreement based on Doma’s existing business.
In 2020, Doma collected $ 190 million in fees and projected that number to rise to $ 464 million by 2023. However, CEO Max Simkoff said that there are other domestic ratings and guarantees on his list.
According to him, the pandemic accelerated the demand for digital closures. “Everything accelerated 10 years into the future, overnight.”

And about the IPO of Hippo for $ 5 billion

Launch of domestic insurance Hippopotamus recorded the highest overarching policy.

The six year old company is set to go public by merging with a blank check company supported by LinkedIn co-founder Reid Hoffman and Zynga founder Mark Pincus. The deal values ​​Hippo at $ 5 billion – almost five times its valuation in July 2020. Hippo will receive a cash IPO of $ 1.2 billion.

The hippo based in Palo Alto has increased $ 350 million from Japanese insurance giant Mitsui Sumitomo in November. other investors include Dragoneer, Ribbit Capital, Fifth Wall Ventures and Lennar.


STATUS OF THE WEEK

-24.4%

Shares of Opendoor since its inception on December 21, 2020


The best CoStar just wasn’t good enough

CoStar’s fight for CoreLogic ended in defeat. The bruised data giant, which has been trying to beat Stone Point Capital and Insight Partners for the past few weeks, has withdrawn a $ 7.35 billion bid, citing rising interest rates.

But … CoStar’s retreat came just hours after news leaked that the CoreLogic board believed the CoStar offer was not good enough.

In February, CoreLogic entered into a $ 6 billion deal with Stone Point and Insight. However, CoStar threw itself with a “superior” offer worth $ 6.9 billion. On March 1, CoStar increased its bid by $ 450 million and gave CoreLogic 48 hours to make a decision.

The rest, as they say, is history.

Howard Lorber: Developer, investor and now VC

Brokerage chief Howard Lorber is trying to invest in props through a new fund, New Valley Ventures.

The fund is a subsidiary of Lorber’s Vector Group, owned by Douglas Elliman, and will invest in the early stages of proptech companies. Initial bets include a minority stake in Rechat, CRM and an investment in Camber Creek.

New Valley Ventures will be led by Richard Lampen, a longtime Vector executor, along with Dan Sakhar and David Ballard. Lampen declined to say how much capital VC must spend, but confirmed that it would be financed by Vector.

Small bytes

MartSmartRent, a startup that develops smart home hardware, has received $ 31 million in strategic funding from investors, including Lennar.
🚧Ecomedes, which brings sustainable supplies to the construction industry, picked up an initial $ 3.25 million round led by M12 from Microsoft.
🚀Mortgage company Rocket Cos. It rose 71 percent to $ 41.60 on March after shares of Reddit Wall Street Bets raised shares.
LL JLL gained share in Roofstock, a marketplace for renting family houses.
🚧 Mozaika, a construction startup that changes plans into plans step by step, was used by Mervin Singson as CFO.
🏠 Realogy has expanded its iBuying RealSure program to Atlanta.
NoKnock, which pre-finances mortgages to allow sellers to buy houses before selling their old ones, has expanded to 23 markets since the beginning of 2021, including 11 markets. He says he is well on his way to reaching 75 markets by 2023.
⭐Elon Musk wants to build a city suitable for dogs called Star base in Texas.


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