Better.com’s latest funding round brings valuation to $4B
Online mortgage lender raised a $200M Series D
Better.com, a digital mortgage startup, has raised $200 million at a $4 billion valuation.
The Series D was led by private equity firm L Catterton and brings Better.com’s total funding to $410 million, according to Bloomberg News. Activant Capital, Ally Financial, American Express Ventures, Ping An and 9Yards Capital also participated in the latest funding round.
The New York-based company launched in 2016 with the goal of streamlining the mortgage origination process by pre-approving borrowers and lowering costs. It closed on its $70 million Series C in January 2019, with backers including Ontario Pension Plan and Goldman Sachs.
Better.com recently tapped former Morgan Stanley investment banker Kevin Ryan as CFO and has hired more than 2,500 since the start of the pandemic, according to Bloomberg. The startup had already been in expansion mode, and last year signed a lease for 44,000 square feet at 3 World Trade Center with the option to take two additional floors.
The online mortgage company and its competitors are facing a favorable market: Interest rates have sunk and low housing supply has driven up prices. In July, the median home price in the U.S. exceeded $300,000 for the first time ever.
United Wholesale Mortgage will soon be publicly traded, and Rocket Cos., the parent of Quicken Loans, has seen shares jump 19 percent since August. [Bloomberg] –– Raji Pandya