Total amount raised
$1.5 Billions
Latest funding date
Location
Better.com has successfully raised significant funding through multiple rounds, with notable investors such as SoftBank and Novator backing the company. The platform leverages AI technology to streamline the home-financing process, offering services like One Day Mortgage and Better HELOC.
Keep reading to explore the intricacies of Better.com's fundraising journey and the investors supporting this innovative platform.
What Is Better.com?
Better.com, founded in 2016, operates in the consumer lending, FinTech, and real estate industries. The company is headquartered in New York, New York, and was founded by Eric Wilson, Erik Bernhardsson, Shawn Low, Viral Shah, and Vishal Garg.
With an employee count ranging from 1001 to 5000, Better.com leverages AI technology to offer a streamlined homeownership journey. The platform eliminates commissions and unnecessary steps, providing mortgage rates in seconds and access to competitive quotes from various insurance providers.
Better.com has facilitated over $100 billion in home loans and offers a range of services, including One Day Mortgage, Better HELOC, and Better Real Estate. The company is publicly traded on NASDAQ under the ticker symbol BETR.
How Much Funding Has Better.com Raised?
- Seed Round
- Amount Raised: Not publicly disclosed
- Date: February 2014
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: Initial funding to develop the platform and launch operations.
- Series A
- Amount Raised: $30M
- Date: June 2016
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale the platform and expand market reach.
- Series B
- Amount Raised: $15M
- Date: February 2017
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance technology and improve user experience.
- Series C
- Amount Raised: $160M
- Date: February 2019
- Lead Investors: Activant Capital
- Valuation at Round: $600M
- Motivation Behind the Round: To scale operations and expand market presence.
- Series D
- Amount Raised: $200M
- Date: November 2020
- Lead Investors: L Catterton
- Valuation at Round: $4B
- Motivation Behind the Round: To capitalize on the booming online lending market.
- Secondary Market
- Amount Raised: $500M
- Date: April 2021
- Lead Investors: SoftBank Vision Fund
- Valuation at Round: $6B
- Motivation Behind the Round: To fuel growth and expand the home finance platform.
- Post-IPO Equity
- Amount Raised: $37M
- Date: August 2023
- Lead Investors: Novator
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing growth and operational scaling.
- Post-IPO Debt
- Amount Raised: $528M
- Date: August 2023
- Lead Investors: SoftBank
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To retire existing debt and fuel further growth.
Total Amount Raised: $1.47B
Current Valuation: $6B
Key Investors
- SoftBank
- Details: SoftBank is a Japanese investment conglomerate known for making large investments in technology and innovation-driven companies. It has a significant presence in the global market, often backing disruptive startups.
- Investment Focus Areas: Technology, innovation, disruptive industries
- Notable Investments: Uber, WeWork, Alibaba
- Novator
- Details: Novator is a private equity firm that invests in technology and telecommunications companies. It is known for its strategic investments in high-growth sectors.
- Investment Focus Areas: Technology, telecommunications, high-growth sectors
- Notable Investments: Not publicly disclosed
- Goldman Sachs
- Details: Goldman Sachs is a leading global investment banking, securities, and investment management firm. It provides a wide range of financial services to a substantial and diversified client base.
- Investment Focus Areas: Financial services, technology, various other sectors
- Notable Investments: Facebook, Spotify, Uber
- Kleiner Perkins
- Details: Kleiner Perkins is a venture capital firm specializing in investing in early-stage and growth companies. It has a long history of backing successful technology startups.
- Investment Focus Areas: Early-stage technology, growth-stage technology
- Notable Investments: Google, Amazon, Twitter
- American Express
- Details: American Express is a multinational financial services corporation known for its credit card, charge card, and traveler's cheque businesses. It has a strong presence in the financial services industry.
- Investment Focus Areas: Financial services, fintech, related technologies
- Notable Investments: Various fintech startups and financial services innovations
What's Next for Better.com?
Better.com stands at the cusp of significant growth opportunities, driven by substantial investments and a booming online lending market. The company's valuation has surged to $6 billion, bolstered by a $500 million investment from SoftBank. This influx of capital positions Better.com to further expand its loan processing capabilities, which have already seen a dramatic increase from $1.2 billion to over $4 billion monthly.
Looking ahead, Better.com is poised for future fundraising opportunities, including a potential IPO with Morgan Stanley and Bank of America Corp. involved. This move could attract additional investments from major financial institutions and venture capitalists, further fueling the company's growth. However, challenges such as maintaining operational efficiency, navigating the complexities of an IPO, and facing competition in the fintech space remain on the horizon.
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