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

Latest funding round values San Francisco-based startup at $623M

States Title CEO Max Simkoff (iStock, States Title)
States Title CEO Max Simkoff (iStock, States Title)

A San Francisco startup that’s digitizing mortgage, title and escrow said it raised $123 million — sinking another nail into the coffin of time-consuming and cumbersome real estate closings.

The funding round brings States Title Inc. valuation to $623 million, according to Bloomberg. The round was led by Greenspring Associates, with participation from Foundation Capital and FifthWall Ventures.

Greenspring’s Jim Lim said that stay-at-home orders meant to curb the coronavirus pandemic have “highlighted the fact that there’s probably a better way to do real estate closing.”

Read more

States Title was founded in 2016 and counts bank and non-bank lenders among its clients. In 2018, the firm received regulatory approval in California to branch out into title insurance, a notoriously opaque part of real estate deals.

Sign Up for the undefined Newsletter

By signing up, you agree to TheRealDeal Terms of Use and acknowledge the data practices in our Privacy Policy.

Led by CEO Max Simkoff, States Title has raised $230 million, including the recent round. Last year, it acquired North American Title Group and North American Title Insurance Co.

Historically, the title industry was dominated by the so-called Big Four: Fidelity National, First American, Old Republic and Stewart Information Services Corporation. (Fidelity nearly bought Stewart for $1.2 billion last year, until the deal fell through.)

But fintech firms have set their sights on the archaic business, with startups like Spruce and OneTitle angling for market share.

[Bloomberg] — E.B. Solomont