The company is one of many who has crept into the mortgage space in recent years to disrupt a process that until recently remained stubbornly analog.
Mortgage startup UpEquity announced this week that it has received $ 25 million in new funding. This shows how investors and venture capitalists continue to view the real estate transaction as ripe for change.
The money is part of a Serie A fundraising round for UpEquity, which was founded in 2019. The company describes itself as a “tech-enabled mortgage platform” that, according to a statement, “offers buyers free cash and increases purchasing power”.
The new financing consists of equity financing of $ 7.5 million and venture capital of $ 17.5 million. Next Coast Ventures led the funding round and UpEquity plans to use the new support to focus on business and product development.
“Our goal is to finally align the mortgage industry with consumer interests,” said Tim Herman, co-founder and CEO of UpEquity, in the statement. “This funding is an affirmation that consumers, real estate agents and venture investors understand the ability to remove frictional losses when buying a home, not just to grow personally, but to achieve the American dream.”
Texas-based UpEquity uses algorithms and other technologies, among other things, to automate underwriting. It also offers both a cash offer and a mortgage to first-time buyers. The company argued in its statement that this would “democratize home ownership”.
The statement adds that UpEquity raised $ 100 million in mortgages in 2020.
While UpEquity is relatively new to the scene, the new round of funding shows how investors are increasingly trying to disrupt more complicated parts of the real estate experience. There was, of course, a time not so long ago when upstarts like Zillow, Redfin, and others messed up the earlier stages of the personal shopping experience.
These actors still exist, of course, but startups and venture capitalists are increasingly starting more complicated parts of the real estate transaction. Knock offers a “home swap” product among these. Ribbon, Opendoor, and others facilitate cash offers; and Qualia has gradually built a comprehensive platform providing digital title and closing services.
The list could go on, of course, but the point is that venture capitalists have a significant interest in streamlining the deal.
Regarding UpEquity, Thomas Ball, CEO of Next Coast Ventures, praised the company in a statement, saying it was “at the helm of PropTech’s growing capabilities”.
“UpEquity has the team, talent and technology to not only be successful,” added Ball, “but also to disrupt and establish itself as a leader in the mortgage credit market.”
Email Jim Dalrymple II