Digital mortgage lender Better.com has raised a $500 million round from Japanese investment conglomerate SoftBank that values the company at $6 billion.
The financing is notable for a few reasons. For one, that new $6 billion valuation, is up 50% from the $4 billion it was valued at last November when it raised $200 million in Series D financing. It’s also up tenfold from its $600 million valuation at the time of its Series C raise in August 2019.
Secondly, it’s further proof that mortgage – a traditionally “unsexy” industry that has long been in need of disruption – is officially hot. For all its controversy, when SoftBank invests, people pay attention.
The COVID-19 pandemic and historically-low mortgage rates fueled acceleration in the online lending space in a way that no one could have anticipated. That, combined with the general fervour in venture funding, means it’s not a big surprise that Better.com has raised $700 million in just a matter of months.
The investment brings Better.com’s total funding raised to over $900 million since its 2014 inception. Other backers include Goldman Sachs, Kleiner Perkins, American Express, Activant Capital and Citi, among others.
According to the Wall Street Journal, SoftBank is buying shares from Better’s existing investors, and agreed to give all of its voting rights to CEO and founder Vishal Garg “in a sign of its eagerness” to invest in the company.
During a one-on-one interview at Lendit Fintech’s USA 2020 virtual event in October, Garg had told me (Read more...)