Toronto-based proptech startup Homewise has announced in February 2021 that it has bagged CAD 3M in a seed funding round led by Clanton Capital. MaRS IAF, Epstein Enterprises and angel investor Joe Canavan (principal of Canavan Capital) also participated in the round. Post the funding round, Noam Edell, president of Clanton Capital, has joined Homewise’s board of directors.
The startup will use proceeds from the funding round, which had a CAD 2.5M target, to continue expanding across Canada and improve the user experience by adding more products and services. The raised capital will also be used to build partnerships and brand awareness in the areas Homewise is currently serving in. The funding will also be utilized to increase its team’s headcount, focusing on data scientists (to improve the technology) and mortgage advisors (to handle the applications coming through Homewise).
The startup’s goal is to replace the existing brokerage process, which Homewise CEO and co-founder Jesse Abrams described as outdated.
Carlos Medeiros and Jesse Abrams founded Homewise in 2018. Its solution connects homebuyers with custom-made mortgages from over 30 banks and financiers in Canada. The startup’s predictive intelligence software immediately scans the market for thousands of different mortgage options to give customers the best-suited options for their situation. Its offering also includes a human element. Homebuyers can speak with Homewise’s advisors’ team on the phone to make sure they make informed decisions. While the startup targets its platform towards the first time homebuyer, the software is also accessible for people switching their mortgage or second-time homebuyers. Homewise aims to replace the traditional brokerage process, which CEO and co-founder Jesse Abrams described as outdated. The process is free to use for homebuyers. Homewise’s business model is based on the financiers’ paying the startup a percentage of the commission earned on a mortgage sold.
During mid-2020, Homewise obtained its Canadian brokerage license and can now be used by homebuyers in every province and territory in Canada. The startup previously operated only in Ontario. Québec is the only Canadian state where Homewise does not have a license to sell mortgages. There, it functions through a partnership with a company whose name has not been disclosed by the startup. The CEO noted that he hopes to secure a Québec license for Homewise this year.
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