Better.com closes Series C at $160m
Written by Peter Walker
Better.com has closed a Series C fundraise at $160 million, bringing the company’s total funding to $254 million to date.
Activant Capital, Ping An Global Voyager Fund, Ally Financial, Citi, AGNC, Healthcare of Ontario Pension Plan and American Express Ventures joined existing shareholders Goldman Sachs, Pine Brook and Kleiner Perkins in the round.
The mortgage platform was created in 2016 after its founder, Vishal Garg, lost a home to an all-cash buyer due to a slow traditional mortgage process. He used the deposit money for the down payment to start Better.com, which has digitised the process to eliminate commissions, fees, unnecessary steps and branch appointments.
Customers are able to upload and eSign documents, get loan estimates in seconds and a pre-approval within minutes. The company claims to close a typical mortgage in half the US industry average – 21 days versus 42 days.
Founder and chief executive Garg explained: “The capital we’ve raised will enable us to accelerate our investment in product development, grow our strategic partnerships, expand our team and scale our platform to continue making it easier for borrowers to get home financing.”
In the last year, Better added 550 new hires and moved its headquarters to 7 World Trade Center to accommodate the rapid growth. The company also opened additional offices in Irvine and Oakland in 2018 and in Charlotte this month.
The startup anticipates hiring an additional 400 people in sales and technology by the end of 2019.
Board member, investor and Activant Capital founder Steve Sarracino said: “Their end-to-end digital solution is simplifying the mortgage process for people, affecting billions of dollars’ worth of home sales – the team is effectively overhauling the way millions of Americans make the most meaningful investment of their lives.”
In addition to Sarracino, Better recently added former CFPB director Raj Date and Pine Brook managing partner William Spiegel to its board.