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
    Photo illustration of CoStar Group CEO Andrew Florance (iStock, Getty/Illustration by Kevin Rebong for The Real Deal)
    CoStar ups its bid to acquire CoreLogic
    CoStar ups its bid to acquire CoreLogic
    Richard Lampen and Howard Lorber (Vector Group)
    Calling all founders: Howard Lorber’s Vector Group launches VC arm
    Calling all founders: Howard Lorber’s Vector Group launches VC arm
    The Real Deal's E.B. Solomont
    Airbnb’s first earnings, behind CBRE’s $200M bet on Industrious
    Airbnb’s first earnings, behind CBRE’s $200M bet on Industrious
    Compass CEO Robert Reffkin and KVS Title  CEO David Kanstoroom. (KVS, Getty)
    Compass acquires DC-area title firm
    Compass acquires DC-area title firm
    From left: Fifth Wall’s Brendan Wallace, Tishman Speyer’s Rob Speyer, Social Capital’s Chamath Palihapitiya, Cantor Fitzgerald’s Howard Lutnick, Pershing Square Capital’s Bill Ackman and Opendoor’s Eric Wu
    Making sense of the SPACe race
    Making sense of the SPACe race
    The Real Deal's E.B. Solomont
    Redfin, CoreLogic and CoStar’s love triangle
    Redfin, CoreLogic and CoStar’s love triangle
    Clockwise left: Sam Zell, Spencer Rascoff, David Simon, and Russell Galbut
    The definitive real estate SPAC tracker
    The definitive real estate SPAC tracker
    Knock co-founders Tom Petry and Demetri Themelis (Photos via Knock)
    Knock, a CRM for landlords, raises $20M
    Knock, a CRM for landlords, raises $20M
    arrow_forward_ios

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

    Loading...