Failed 2024
Compass Real Estate
Giving real estate agents better tech doesn't justify a $7B+ valuation. Brokerage is a commodity business.
Founded → Closed
2012 → 2024
Funding Raised
$1.5B
Industry
Real Estate/PropTech
Country
USA
IdeaProof AI Failure Score
62/100
Market Fit Risk
50
Burn Rate Risk
75
Founder Risk
35
Full Analysis
Compass positioned itself as a tech-enabled real estate brokerage, raising $1.5B and IPO'ing in 2021. But the company essentially bought market share by offering agents higher commission splits. Revenue was enormous ($6B+) but margins were razor-thin. The stock fell 85%+ from its IPO peak as investors realized Compass was a traditional brokerage with a tech veneer, not a technology company.
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