Setpoint has moved one step closer to the transaction with its Series A funding round led by a number of investors including 645 Ventures, Andreessen Horowitz and Fifth Wall.
The firm will use the cash to invest in engineering and develop its software to scale in 2023.
Setpoint is an asset-backed lending firm that makes the buying and rental process throughout the funding process, and manages it all from one centralised platform that automates the funding lifecycle in as little as 24 hours.
The firm offers collateral management, diligence agent services, portfolio management and services in the valuation management space.
The platform also verifies and stores documents, automates interest rate calculations and digitises assets such as cars and homes.
Setpoint is applicable to a wide array of property transactions, including iBuying, rent-to-own and fractional ownership. The company has funded over $2bn transactions since launch.
Stuart Wall, CEO and co-founder at Setpoint, said:
"Buying and renting homes is a complex system of trust and credit underpinned by warehouse lenders and firms that originate loans. But these transactions are powered by email, Excel, paper documents and software developed in the 1980s.
"In less than a year, Setpoint has made significant headway solving this problem within proptech, leading to tens of thousands of home sales, which we expect to more than quadruple in 2023.
"2023 is the perfect time to overhaul America’s credit infrastructure. Near-zero interest rates during COVID helped consumers and businesses overcome high transaction costs. As rates rise, infrastructure and technology will be critical to ensure trust and credit is available to the PropTechs, people and businesses who need it."
In an update posted on its website, Andreessen Horowitz said:
"[Setpoint's] product not only helps leading proptech companies like Opendoor and Flyhomes scale their originations and capital markets activities with less manual work, but importantly, also helps reduce the amount of time required to hold these assets on balance sheet. This minimizes the equity intensity of these businesses and/or the amount of interest paid to expensive mezzanine lenders — a vital benefit in this macro environment.
"We believe that Setpoint is well positioned to help improve workflows behind life’s most important transactions and we couldn’t be more excited to be leading Setpoint’s Series A round of financing and to be joining their board of directors."