Title giant First American pumps $40M into digital closing startup

Latest funding adds to $30M provided last year to launch mobile-first service

National /
Nov.November 11, 2020 09:20 AM
Endpoint CEO Scott Martino and First American CEO Dennis Gilmore (iStock)

Endpoint CEO Scott Martino and First American CEO Dennis Gilmore (iStock)

One of the country’s biggest title insurers is doubling down on digital closings.

First American Financial Corp. said it’s investing $40 million into Endpoint, a title and escrow startup it launched last year. That’s on top of the $30 million it already pumped into Endpoint to develop the standalone company, which bills itself as a mobile-first service.

Endpoint, based in El Segundo, California, said the new funding will allow it to accelerate hiring and expansion, both of new products and to new markets. Endpoint’s escrow automation replaces the traditional exchange of papers at real estate closings. So far, it operates in Seattle, Southern California and Arizona.

First American is one of the so-called “Big Four” insurers that dominate the title industry. Founded in 1889, it generated $6.2 billion in 2019 revenue.

In a statement, Endpoint CEO Scott Martino said buyers and sellers today “expect a certain level of convenience and speed.”

Earlier this year, First American bought housing tech company Docutech for $350 million. At the time, the title insurance company said the deal brings it closer to completely digital mortgages and closings.

In recent years, investors have backed other startups aiming to streamline the antiquated closing process. States Title, a four-year-old startup in San Francisco, raised $123 million last year to digitize title, mortgage and escrow services. And Spruce, a New York startup founded in 2016, raised $29 million Series B in May.

First American developed Endpoint with BCG Digital Ventures, the corporate venture arm of Boston Consulting Group.





    Related Articles

    arrow_forward_ios
    Future City Newsletter
    Proptech startup CEO on valuation woes: “Flat is the new up”
    Proptech startup CEO on valuation woes: “Flat is the new up”
    Jokr CEO Ralf Wenzel (LinkedIn, iStock, Illustration by Kevin Cifuentes for The Real Deal)
    Jokr cuts U.S. operations as rapid delivery party winds down
    Jokr cuts U.S. operations as rapid delivery party winds down
    Zumper's Anthemos Georgiades (Getty, iStock)
    Zumper slashes 15% of staff
    Zumper slashes 15% of staff
    Compass' market cap is now under the amount the resi brokerage raised from VCs and in its IPO (Masayoshi Son/Getty Images, iStock/Photo illustration by Steven Dilakian)
    Compass is now worth less than it raised from investors
    Compass is now worth less than it raised from investors
    From left: Former Better.com executive vice president for sales and operations Sarah Pierce; Better.com CEO Vishal Garg (Better.com, Scott Rosenthal, CC BY-SA 4.0/via Wikimedia Commons, iStock)
    Better.com accused of misleading investors
    Better.com accused of misleading investors
    Doug Brien of Mynd and The Real Deal's Hiten Samtani
    Mynd over matter: Startup founder on cracking the single-family rental sector
    Mynd over matter: Startup founder on cracking the single-family rental sector
    Future City Newsletter
    Future City: A steadfast SPAC sponsor
    Future City: A steadfast SPAC sponsor
    Gopuff co-CEO Rafael Ilishayev (Gopuff, iStock)
    Gopuff scaling back warehouse footprint amid rapid-delivery slowdown
    Gopuff scaling back warehouse footprint amid rapid-delivery slowdown
    arrow_forward_ios

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

    Loading...