Setpoint Raises $31M led by Andreesen Horowitz

Some of the biggest names in venture capital and real estate lending are throwing their support behind a startup aiming to modernize the software behind lending for real estate and other businesses.

Setpoint, which is based in Austin and New York, launched a $31 million Series B round led by Andreessen Horowitz, a storied Silicon Valley investor that has backed giants such as Airbnb, Slack and Instagram. Wells Fargo and Citi joined the round, which brings Setpoint’s total capital raised to $76 million.

The company’s software simplifies the process of managing debt facilities, which play fundamental roles in real estate lending. Its platforms aim to replace the byzantine stack of Excel spreadsheets and outdated programs backing much of the industry’s warehouse lending facilities. It recently acquired Resolute to expand its work in due diligence, especially on single-family rentals and residential transition loans.

More recently, the company has expanded outside real estate, working with firms in everything from produce to fertility.

“This is not just a real estate problem,” said Ben Rubenstein, president of Setpoint.

The company plans to put much of the new funding into product, engineering, sales and marketing, Rubinstein said.

But the new funding carries weight beyond its dollar value. It also serves as a sign of approval from Wells Fargo and Citi, mortgage lending heavyweights who will help strengthen the startup’s reputation in a business where trust is paramount.

“This is a business where it’s all about trust. We are the standard of these calculations and this verification, so we need to be a trustworthy source,” Rubenstein said.

The company’s Series A round in December 2022 came as layoffs roiled the iBuying businesses that made up many of Setpoint’s early clients. Rubenstein and Michael Lam, two of the company’s co-founders, came from Realtor.com, where they worked as CRO and COO, respectively. The third co-founder, Stuart Wall, previously founded Signpost, a marketing firm for small businesses.