Title insurance startup Spruce raises $4.5M in venture funding

The company claims to offer faster, cheaper service

TRD NEW YORK /
May.May 26, 2017 05:30 PM

Spruce’s Cofounder Patrick Burns and COO Andrew Weisgall

Title insurance startup Spruce raised $4.5 million in a Series A funding round from Bessemer Venture Partners, Omidyar Network, Third Prime Capital and other investors.

The company, founded by finance entrepreneurs Patrick Burns and Andrew Weisgall, claims to offer cheaper and faster title insurance by using new technology to research and process contracts.

In a special report last year, The Real Deal broke down how title insurance firms collude to keep prices, and their profits, high. Firms tend to compete by wining and dining clients rather than by offering cheaper prices. In 2014, the industry made a net profit of $800 million on $12.2 billion on revenue.

“Why haven’t these companies kept up with the times, and applied modern technology to their operations? Lack of incentive, of course,” Spruce’s founders wrote in a blog post Friday. [TechCrunch]Konrad Putzier


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Bernie Sanders (Credit: Getty Images)

Bernie Sanders throws support behind New York rent-suspension bill

Web searches for terms including “homes for sale” are way down up north. (Credit: Pixabay)

Fewer Canadians are searching for homes online amid pandemic

Hometrack Managing Director David Ross and a view of Nottingham, England (Credit: Hometrack)

Demand for housing tanks in UK as buyers stay home

(Credit: iStock)

Stimulus deal buoys real estate stocks, but coronavirus maintains its grip

The Plaza Hotel, Sofitel New York at 45 West 44th Street and Le Bernardin at 155 West 51st Street (Credit: Yarl via Wikipedia Commons, Sofitel and Le Bernadin)

Mass layoffs claim jobs at the Plaza, Sofitel and Le Bernardin

arrow_forward_ios
Loading...