Tech-driven mortgage bank Better Mortgage has picked up a $15m Series B financing round from Kleiner Perkins Caufield & Byers, Goldman Sachs and Pine Brook.
Better said the new capital would go towards launching and expanding its home purchase finance product on Better.com.
The latest round follows a $30m Series A investment from last summer, led by Goldman, Pine Brook, KCK Group, 1/0 Capital and IA Ventures.
The company said it has funded more than $500m of loans since it was founded in January last year.
KPCB general partner Noah Knauf said, “Better is a breakthrough for consumers in the mortgage market.
“The next generation of homebuyers will expect a customer experience that none of the current industry players are equipped to deliver, and we’re very excited to join Goldman Sachs and Pine Brook in helping Better transform the market.”
Pine Brook’s Nicholaos Krenteras added, “Technology has upended personal finance, replacing expensive middlemen with intuitive and transparent online processes.
“The exception has been the mortgage origination business, which has been sheltered by onerous capital, regulatory, and operating requirements.
“Innovation in the industry has been defined by traditional players patching together third-party services, leading to poor borrower experiences and runaway costs.
“In contrast, Better built a seamless digital platform from the ground up.”
Better Mortgage operates in California, New Jersey, North Carolina, Pennsylvania, Washington, Oregon, Connecticut, Illinois and Washington D.C., and plans to continue expanding its licensed geographic footprint in 2017.
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