Tech Startup or Real-Estate Broker? Fidelity Values Compass at $2 Billion

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 neighborhood data and a Pinterest-like app for organizing home listings would make real-estate agents more productive and therefore, more profitable, the company says. The pitch caught the attention of Fidelity Investments, which made a rare bet on a private company, valuing the business at $1.8 billion, Compass said on Wednesday.

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 gives 15 percent to 30 percent to Compass. It lures the industry’s top talent with lavish signing bonuses and specializes in high-margin, luxury homes in upscale, coastal markets. The much-touted technology is, according to several agents, not that different from what other brokers provide.