Compass Real Estate (originally known as Urban Compass) is one of the fastest-growing real estate brokerage companies in the United States. Founded in 2012, the business secured its initial seed funding to the tune of $8 million from forward-thinking investors like Thrive Capital and Goldman Sachs, who saw huge potential in the company’s combination of technological advancements and people-focused real estate practices.
This investment soon proved to be a smart one, as Compass was valued at a staggering $8 billion when it went public in April of 2021. However, innovative companies like Compass are inevitably going to experience challenges to overcome during such a meteoric rise, and those obstacles may have caused concern to anyone looking to begin their real estate relationship with the company.
Fortunately, you can rest assured that Compass Real Estate has come through the other side of the global pandemic in one piece, and has resolved all of its previous issues while dedicating its energies to making the future better for all buyers and sellers of homes.
Like all businesses, the global Coronavirus pandemic took a toll on the company. A combination of increased restrictions and global uncertainty caused a large dip in real estate over the course of 2020. This unforeseen worldwide occurrence contributed to Compass losing $270 million that year.
With large unexpected losses and an unpredictable economy to contend with, a change was needed at the very peak of the global pandemic. Unfortunately, CEO Robert Reffkin had to make the difficult decision to lay off some employees at this time.
This wasn’t the first test of the resolve of Compass, however, as one of their competitors, Zillow, filed two lawsuits against them in 2019. These lawsuits were made against Compass for allegedly poaching employees who had non-compete contract clauses, and stealing trade secrets.
Compass firmly and quickly denied these claims, stating that Zillow had used ‘scare tactics’ in their non-compete clauses. A settlement between both parties was later reached, and this legal issue has now been completely resolved.
A future that’s focused only on success
So, what does the future hold for this innovative real estate brokerage firm? And how can any potential new clients of theirs expect to benefit from their skills and assistance when it comes to their housing needs?
With the global economy slowly but surely stabilizing again and the real estate market shaking off its post-Covid hangover, a crystal clear realization can be seen for the future of Compass – no matter what happens in the world, people are always going to need to sell or purchase homes.
Acknowledging past obstacles is important. After all, it helps businesses to hone their skills and tests their resolve. However, it’s also imperative to know when issues like this have been completely overcome, and when a company has clearly soared past these issues into a future that’s focusing on what truly matters – empowering people to buy and sell homes with ease to secure better futures for themselves and their loved ones.