UpEquity, a tech-enabled mortgage platform based in the US, raised US$ 25M in a Series A funding on 11 February 2021.
Investment: The Series A funding which is a combination of growth equity and venture debt, was led by Next Coast Ventures. The funding consists of US$ 7.5 million of equity financing and US$ 17.5 million of venture debt.
Purpose of the funding: The startup plans to expand into new markets, invest in product development and business development with market-leading real estate agents and to further reduce their time-to-close to 10 days.
Founded in 2019 by Louis Wilson and Tim Herman, UpEquity is a tech-enabled mortgage platform that aims to create a better way to buy a home. It helps customers to close offers faster by leveraging its proprietary combination of free cash offers, automated underwriting powered by a proprietary blend of computer vision and algorithms and low mortgage rates. The startup is headquartered in Austin and active in Texas, Colorado, Florida and California. It claims to have originated US$ 100M in mortgages in 2020.
Wilson and Herman founded UpEquity when they were still attending Harvard Business School and later graduated from Y Combinator’s Summer 2019 accelerator program. The startup was created to solve the broken home buying process. The first-time homebuyers also receive access to the best houses on the market to realise their American Dream.
What the CEO has to say: “Our goal is to finally align the mortgage industry with consumer interests. This funding is validation that consumers, real estate agents and venture investors understand the power of removing friction from the home buying process, not only for personal advancement but to attain the American Dream,” said UpEquity Co-Founder and CEO Tim Herman.
About Next Coast Ventures
Based in Austin, Next Coast Ventures partners up with entrepreneurs building innovative companies in big markets. It is a provider of early-stage capital to high-growth startups. Apart from funding, Next Growth also provides its portfolio companies with hands-on, company building resources through its strong industry network.
What the investors have to say: “As real estate continues to evolve in the face of limited supply and tight competition, UpEquity is at the helm of PropTech’s growing capabilities. Most innovation has focused on the front end, but until now, nobody has expedited what happens after the borrower submits an application. UpEquity has the team, talent and technology to not only succeed but to disrupt and emerge as the leader in the mortgage lending marketplace,” said Thomas Ball, managing director at Next Coast Ventures.
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