The business co-funded by Adam Neumann and Miguel McKelvey in 2010 as a trendy co-work space, announced in Q3 2017 that it had raised $4.4 billion in funding from SoftBank Group and SoftBank Vision Fund. SoftBank invested $3 billion in WeWork itself and added another $1.4 billion into three new WeWork subsidiaries — WeWork China, WeWork Japan and WeWork Pacific. According to Cushman & Wakefield, WeWork is today the central London’s biggest office occupier.
In the picture: WeWork Shanghai
The New York-based startup with the goal of disrupting the real-estate market, has raised $450 million at a $2.2 billion valuation. The new investment from Japanese conglomerate SoftBank’s $100 billion tech fund, will be used to bring the Compass platform to more cities than the 11 areas where it now operates. While it employs traditional brokers, the main selling points of Compass are the leveraging of data to improve the efficiency of the real estate business along with a sleek mobile app for buyers and renters.
In the picture: the two co-founders of Compass, Ori Allon and Robert Reffkin in front of the company’s HQ in New York.
They secured $230 million in debt from LL Funds LLC in Philadelphia in early 2017 to expand the company’s online home sales software and continue hiring at least three new employees a week, from marketing and accounting, to tech and renovation roles. OfferPad is a direct home buyer, in a mission to make “selling a home” convenient and hassle-free, by allowing sellers to get the best of both worlds – a fair and competitive offer – all at the click of a button.
Investment in real estate tech evolved beyond simple venture capital investments 2017, the study by RE:Tech shows. Corporations, who have continued to invest in real estate tech have also demonstrated increased interest in alliances and partnerships to leverage the potential of future gains. Through alliances and partnerships, real estate tech companies can gain access to customers and customer data they may not be able to access independently. Additionally, corporations gain access to technology that can help provide more attractive and cost-effective solutions.
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