WeWork co-founder Adam Neumann has a new investment: Valon Mortgage.
The startup, which promises to cut mortgage servicing costs by half, raised $50 million in Series A funding from a group of investors that includes Neumann and venture capital firm Andreessen Horowitz, according to Bloomberg News.
Valon, which was previously known as Peach Street, was founded in 2019 and previously raised just over $3 million in seed funding.
The company has an ambitious goal: to increase its mortgages committed to be serviced to $10 billion by the end of the year, up from its current $30 million. It recently won approval from Fannie Mae to service its home loans. Eventually, it plans to add other financial products.
“Homeowners are faced with clumsy websites, call centers, and often misinformation,” Angela Strange, a general partner at Andreessen Horowitz and Valon board member, told Bloomberg. “In Valon, they have a trusted software-driven adviser.”
Other investors include Jefferies Financial Group and New Residential Investment Corp., an affiliate of Fortress Investment Group.
Neumann’s interest in Valon goes back to the beginning of last year. It’s one of several residential startups the former WeWork CEO has invested in, including Alfred Club, which provides services such as cleaning to apartment buildings, and HomeTalk, an online do-it-yourself home improvement service.
[Bloomberg] — Sasha Jones