Title insurance startup Spruce raises $15.6M

Company previously raised $4.5M in a Series A round

TRD New York /
Jul.July 19, 2018 02:30 PM

Spruce’s Cofounder Patrick Burns and COO Andrew Weisgall

Following the annulment of strict marketing regulations on title insurance firms, startup Spruce has raised $15.6 million.

The firm, which bills itself as the first digital-native title company, filed a notice with the Securities and Exchange Commission on Tuesday. Last May, Spruce raised $4.5 million in Series A funding from investors including Third Prime Capital, Bessemer Venture Partners and Omidyar Network.

The company is based in Lower Manhattan at 50 Broad Street and led by co-founders and finance entrepreneurs Patrick Burns and Andrew Weisgall. It claims to use new technology to provide cheaper and faster title insurance.

Representatives for Spruce did not respond to a request for comment.

Sources have previously told The Real Deal that the title industry, which is dominated by a handful of massive companies, is ripe for technological change. One of the few other new players to break into the industry in recent years has been Daniel Price’s OneTitle, which launched in 2014.

TRD ranked New York’s largest title insurance firms in its July issue. First American Title Insurance was at No. 1, writing policies on roughly $7.49 billion worth of sales during the 12-month period that ended on March 31, 2018. Fidelity National Title Insurance Company followed, with $4.83 billion, and Chicago Title Insurance Company took third place, with $2.7 billion.

Meanwhile, Judge Eileen Rakower recently annulled strict new anti-marking rules that the Department of Financial Services had imposed on the industry, although the state is in the process of appealing the decision.


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
States Title CEO Max Simkoff (iStock, States Title)

States Title raises $123M to digitize title, mortgage and escrow

States Title raises $123M to digitize title, mortgage and escrow
A rendering of 1998 Second Avenue in Harlem and Peter Fine (Credit: GF55 Architects)

Peter Fine inks $70M construction loan for Harlem resi project

Peter Fine inks $70M construction loan for Harlem resi project
JPMorgan Chase's Jamie Dimon and Fortress Investment Group's Wes Edens (Dimon via Mark Wilson/Getty Images; Edens via Scott Olson/Getty Images)

JPMorgan, Fortress are the latest firms to build up war chests

JPMorgan, Fortress are the latest firms to build up war chests
326 West 87th Street and 30 Park Place (Credit: Google Maps)

Luxury home contracts reach highest levels since shutdown

Luxury home contracts reach highest levels since shutdown
Clockwise from left: 301 First Avenue New York, the Barclay hotel at 111 East 48th Street and 30 Park Avenue (Credit: Google Maps)

These were Manhattan’s largest real estate loans in April

These were Manhattan’s largest real estate loans in April
Brian Harris, CEO of Ladder Capital (Credit: iStock)

“What, me worry?” Ladder Capital says it can easily meet margin calls

“What, me worry?” Ladder Capital says it can easily meet margin calls
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...