Mortgage

Money supply fintech UpEquity receives $ 50 million in funding

Proptech mortgage company UpEquity, the digital platform that enables home buyers to make cash offers, announced on Thursday that it closed its $ 50 million Series B financing.

Venture capital firm S3 Ventures led the round, which consisted of $ 20 million in equity and $ 30 million in allocated debt. Other partners included Next Coast Ventures, which led its previous funding round earlier this year, as well as BP Capital Management, Alumni Ventures, Gaingels, Launchpad Capital and Early Light Ventures.

Austin-based UpEquity – part of a wave of real estate finance firms, sometimes referred to as power buyers, that offer customers the ability to pay for homes in cash and increase the likelihood of a hammer price – has $ 76.7 million since its inception in 2019 US dollars collected, according to Crunchbase.

The proportion of apartments paid for in cash rose noticeably in the past year, according to the state association of real estate agents. In September, cash sales represented 23% of purchases, compared to 18% a year earlier. The share also rose slightly from 22% in August, but from a high of 25% in April this year.

That percentage includes an increasing number of investor buyers, which has made the market for potential homebuyers even more difficult this year. Investors made up nearly 16% of the buying market in the second quarter of this year, up from just over 10% a year ago, according to Redfin.

"We are impressed with the company's vision of enabling all Americans to win their dream home, even in the face of tough competition from institutional investors," said Charlie Plauche, partner at S3 Ventures, who joins UpEquity's board of directors under the funding agreement.

Tim Herman from UpEquity

The latest investment will be used to support UpEquity's automated underwriting efforts as it aims to cut down times on cash purchases to 10 days.

“Ultimately, our vision is to create equal access to the American dream through seamless on-demand home buying.

UpEquity not only offers cash offers on behalf of customers, but also offers them mortgage options. The company intends to use some of the funds to hire new loan officers as it expands. Currently licensed in Texas, Colorado, Florida, Illinois, and Georgia, UpEquity's revenue grew 500% year over year, and the company plans to generate $ 1 billion in volume over the next 12 months.

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