Adam Neumann invests in mortgage servicing startup

Valon Mortgage has raised $53M since its 2019 founding

National /
Feb.February 03, 2021 09:30 AM
From left: Valon board member Angela Strange, Valon CEO Andrew Wang and Adam Neumann (Photos via Andreessen Horowitz, Valon, Getty)

From left: Valon board member Angela Strange, Valon CEO Andrew Wang and Adam Neumann (Photos via Andreessen Horowitz, Valon, Getty)

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






    Related Articles

    arrow_forward_ios
    HqO CEO Chase Garbarino (HqO via Facebook)
    Big landlords invest $60M in “tenant experience” startup HqO
    Big landlords invest $60M in “tenant experience” startup HqO
    HomeX founders Michael Lerner and Vincent Payen (HomeX)
    HomeX nabs $90M to connect homeowners and repair techs
    HomeX nabs $90M to connect homeowners and repair techs
    The Real Deal's E.B. Solomont
    Compass stock drops, Better.com gets SoftBank investment
    Compass stock drops, Better.com gets SoftBank investment
    Better CEO Vishal Garg and SoftBank CEO Masayoshi Son (Better.com, Getty)
    Better.com lands $500M investment from SoftBank
    Better.com lands $500M investment from SoftBank
    (iStock)
    Underwriting flexibility
    Underwriting flexibility
    Tower 535 in Hong Kong and WeWork CEO Sandeep Mathrani (Photos via SOM, Getty)
    WeWork exits first Hong Kong location as part of global downsizing
    WeWork exits first Hong Kong location as part of global downsizing
    The WeWork saga through the eyes of its documentarian
    The WeWork saga through the eyes of its documentarian
    The WeWork saga through the eyes of its documentarian
    Zigg Capital's Dave Eisenberg and Ryan Orley (Zigg, iStock)
    Zigg Capital nabs $225M to invest in proptech startups
    Zigg Capital nabs $225M to invest in proptech startups
    arrow_forward_ios

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

    Loading...