AUSTIN, Texas--(BUSINESS WIRE)--UpEquity, the tech-enabled mortgage company creating a better way to buy a home, today announced the closing of $50 million in Series B funding led by S3 Ventures, with $20 million in equity and $30 million in debt allocated. Next Coast Ventures also participated in the round, along with BP Capital Management, Alumni Ventures, Gaingels, Launchpad Capital and Early Light Ventures.
UpEquity has seen year-over-year revenue growth of 500% and has raised a total of $77 million to date. The company anticipates originating more than $1 billion in mortgages over the next 12 months. As part of the funding round, S3 Ventures Partner Charlie Plauche will be joining the UpEquity board.
“Institutional investors have deployed a stunning $77 billion in a period of six months into single-family homes as an asset class with no signs of slowing down,” said Plauche. “Your average homebuyer is now regularly competing against massive companies that can offer very attractive terms to sellers such as all-cash offers and fast close times. UpEquity’s technology is leveling the playing field for everyone by enabling average homebuyers to also make all-cash offers with market-leading close times. We are excited to be involved.”
Offering a More Competitive Option for Realtors and Buyers Without Sacrificing Competitive Rates
“At the end of the day, our vision is to create equal access to the American dream through frictionless, on-demand homebuying, and it starts with bringing technology into the underwriting process,” said UpEquity Co-Founder and CEO Tim Herman. “By removing cost and inefficiencies from the mortgage process, our customers can make all-cash offers at zero cost to them and still get access to competitive interest rates. They get the best of both worlds.”
UpEquity is part of a new class of startups called Power Buyers that are enabling homebuyers to make all-cash offers. With a technology-first approach, UpEquity is able to take on far less risk and close faster than other Power Buyers, resulting in lower interest rates, no incremental fees and better service for the customer.
UpEquity is Setting a New Bar for Customer Service in the Mortgage Industry
“We’re giving our customers more choices than the legacy mortgage industry. We’re able to do so without sacrificing essentials like competitive mortgage rates and while providing an exceptional customer experience,” said Herman. “This gives the average American a more fair chance of winning the home they want.”
Homebuying is complicated, slow and uncertain. UpEquity is addressing this problem head-on with technology. The average Net Promoter Score (NPS), a common measure of customer satisfaction, is 16 for mortgage lenders. This is among the lowest scores for any industry. Neither buyers nor Realtors benefit from a world where closing on a house can take up to 50 days. UpEquity proudly touts an NPS of 80 and is able to close a mortgage in an average of 18 days.
“We are impressed with the company’s vision to enable all Americans to win their dream home, even when faced with stiff competition from institutional investors,” said Plauche. “In short, UpEquity allows the average homebuyer to have a shot at competing with the large real estate investment firms of the world in the homebuying process. We are excited to be a part of leveling the playing field in this industry.”
To learn more, visit www.upequity.com.
Co-founded by Tim Herman and Louis Wilson, UpEquity is on a mission to transform the homebuying experience by giving every homebuyer the opportunity to make a competitive, winning offer on their dream home. Its Buy with Cash program helps homebuyers make an all-cash offer that's four times more likely to be accepted than traditional mortgages. UpEquity's differentiated mortgage technology works at superhuman speed to provide a painless, fast mortgage experience for its customers. The company has experienced 500% year-over-year growth in revenue and carries a Net Promoter Score five times higher than the industry average. This further highlights the company's truly unique approach in an otherwise saturated market. UpEquity is headquartered in Austin and has locations around the country. Visit their website at upequity.com.
About S3 Ventures
S3 Ventures is one of the largest venture capital firms based in Texas. Backed by a philanthropic, multi-billion-dollar family for over fourteen years, we empower great entrepreneurs with the commitment to patient capital and true resources required to grow extraordinary, high-impact companies in Business Technology, Consumer Digital Experiences, and Healthcare Technology.