Setpoint, a startup that has built software to help other companies close loan transactions faster, has raised $43 million in a Series A round led by Andreessen Horowitz (a16z).
The increase comes just six months after Austin, Texas-based Setpoint c lose a seed round of $5,5 million and $150 million in securitization.
Entrepreneurs Ben Rubenstein, Stuart Wall, and Michael Lam founded Setpoint in 2021 with the goal of "building a next-generation infrastructure for all asset-backed lending." Asset-based loans are any loan that is secured by an asset. If the loan is not repaid, the asset is the collateral.
In other words, Setpoint It claims to be the "Stripe for credit" and has created an operating system for originators that "makes loan transactions instant, automated, and error-free." It does things like verify and store documents, automate the calculations of Tasas of interest and digitize assets such as houses.
“If Stripe is a next-generation payment infrastructure, the goal of Setpoint is to be the funding operating system that companies like SoFi and Opendoor will use to run their businesses,” Rubenstein said. The ultimate goal, he added, is make credit more available and underlying assets and loans more liquid.
Opendoor is already a client of Setpoint, along with Offerpad, Orchard, Backflip, Wander, and “many other proptechs,” according to CEO and co-founder Wall.
As evidenced by its customer base, the initial focus of Setpoint it was on boosting real estate transactions, but now it's expanding into asset-backed lending in general. The company also serves as a lender itself, provide capital to alternative/proptech transaction companies. By also providing these companies with software that is designed "to help them scale and grow," Setpoint you are trying to reduce your risk on the capital side.
Until now, as a lender, Setpoint has lent or guaranteed more than $2 billion in capital to companies like Homeward, Opendoor, Flyhomes and Houwzer. It claims to work with “virtually every funded Power Buyer and I-Buyer” and is now expanding into Single Family Rental (SFR) and other proptech models such as fractional and rent-to-own. Clients use the capital to invest in their operations, for example, buying homes or restructuring loans.
The startup in SaaS mode sees its revenue grow 13x year-over-year through Q2022 5, but it's important to note that it likely started from a small base, having been founded last year. Net dollar retention in its first 224 quarters was +XNUMX% per quarter, which means that customers of Setpoint more than doubled their spending with the company each quarter. This reference point it is on track to drive 25,000 home transactions this year and hopes to drive more than 100,000 by 2023.
“Behind many of life's most important transactions—buying or renting a home or starting a business—is a complex system of trust and credit. Every day, billions move between deposit lenders like Goldman Sachs and loan originators like Flyhomes,” said Wall, chief executive of Setpoint. “These transactions work via email, Excel, paper documents, and software developed in the 1980s. In less than a year, Setpoint has made significant progress in solving this problem within proptech.”
Stonecroft, 75andSunny, Fifth Wall, 645 Ventures, NextView Ventures, LiveOak Venture Partners, Vesta Ventures and ATX Venture Partners participated in the company's latest round of financing. Other sponsors include SPencer Rascoff, founding CEO of Zillow; 8VC's Joe Lonsdale, Jon Stein, Founding CEO of Betterment, NextView Ventures, Capital Factory and Wild Basin Investments.
Wall previously founded and was the CEO of Signpost, a CRM platform for small businesses that came up in a private equity sale in 2019. President Rubenstein and CIO Lam co-founded opcity in 2015, a sales platform for real estate professionals that was acquired by realtor.com for $210 million in 2018. After the acquisition by realtor.com, Rubenstein and Lam remained as chief revenue officer and chief operating officer, respectively. Rubenstein was also a co-founder of Yodle, an SMB digital marketing company acquired by Web.com in 2016 for $342 million.
Setpoint currently has 22 employees and is looking to grow its engineering and operations teams.
