Ori Allon, who sold two internet start up companies to Google Inc and Twitter respectively, has laid out plans to announce a USD20 million funding round for a firm that sifts through complex databases, this time for New York city apartment rentals.
The investment made is in Urban Compass, which was established by Allon with Robert Refkin, who was a former employee of Goldman Sachs Group Inc. The company had been valued at USD150 million, according to an individual with knowledge of the terms of the negotiations. This valuation is five times the company's value during its November 2012 seed round, which valued the company at a mere USD8 million.
Urban Compass utilizes its image database with a team of 'neighborhood specialists' that would help apartment seekers to available homes. The charge would be less than a month's rent should a lease agreement be eventually signed. The backers of the site include Founders Fund and Conde Nast, with the site having plans to hire more local representatives. The goal is to build a network of businesses to offer services to others after the individuals have moved into their new home.
According to Allon during an interview at Urban Compass' headquarters in the SoHo district of New York, "We are really focused on the after-market now - what happens once you move in and how we can help you. We are the first ones to know you have a new address."
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