Valon has successfully raised $100 million in its Series C funding round, marking a significant milestone in its growth journey. The company focuses on simplifying homeownership and mortgage servicing for its users.
Keep reading to delve into the details of Valon's funding journey and the investors who are backing this innovative platform.
What Is Valon?
Valon, founded in 2019, is a residential mortgage servicer, lender, and insurance agency based in New York. The company aims to simplify homeownership by providing ease, security, and financial know-how to homeowners.
Valon was co-founded by Andrew Wang and Eric Chiang, who envisioned a more transparent and user-friendly mortgage servicing experience. The company has grown rapidly and now employs over 200 people.
Valon's services include mortgage servicing, lending, and insurance, offering tools and resources for managing mortgages, obtaining new ones, using home equity, refinancing, consolidating debt, and getting insured.
How Much Funding Has Valon Raised?
- Seed Round
- Amount Raised: $3.2 million
- Lead Investors: Alley Corp., Soros, Kairos, Zigg Capital
- Motivation Behind the Round: Initial funding to develop and launch the platform.
- Series A Round
- Amount Raised: $50 million
- Date: February 2021
- Lead Investors: Andreessen Horowitz (a16z)
- Motivation Behind the Round: To grow the mobile-first mortgage servicing platform, triple headcount, and acquire more MSR contracts.
- Recent Funding Round
- Amount Raised: $43.9 million
- Lead Investors: An affiliate of Starwood Capital Group, an affiliate of Freedom Mortgage, Human Capital Management, Marcelo Claure
- Motivation Behind the Round: To support rapid growth, hiring, development of loan originations and property insurance business, and potential future strategic acquisitions.
Total Amount Raised: $97.1 million
Current Valuation: (~estimated)
Key Investors
- Andreessen Horowitz (a16z)
- Details: Andreessen Horowitz is a private venture capital firm based in Silicon Valley. It was founded by Marc Andreessen and Ben Horowitz in 2009.
- Investment Focus Areas: Technology, Fintech, Consumer, Enterprise, Bio + Healthcare, Crypto
- Notable Investments: Facebook, Airbnb, Lyft
- Starwood Capital Group (affiliate)
- Details: Starwood Capital Group is a private investment firm with a focus on global real estate. It was founded by Barry Sternlicht in 1991.
- Investment Focus Areas: Real estate, Energy infrastructure, Oil & gas
- Notable Investments: Various real estate properties and energy projects
- Freedom Mortgage (affiliate)
- Details: Freedom Mortgage is a full-service mortgage company that provides mortgage loans and services. It was founded in 1990 and is headquartered in Mount Laurel, New Jersey.
- Investment Focus Areas: Mortgage lending, Mortgage servicing
- Notable Investments: Various mortgage-related services and products
- Human Capital Management
- Details: Human Capital Management is an investment firm that focuses on supporting innovative companies. Specific details about the firm are limited.
- Investment Focus Areas: Not specified
- Notable Investments: Not specified
- Marcelo Claure
- Details: Marcelo Claure is the CEO of SoftBank Group International and a prominent investor. He has a background in telecommunications and technology.
- Investment Focus Areas: Technology, Telecommunications, Real estate
- Notable Investments: SoftBank Vision Fund investments in various tech companies
What's Next for Valon?
Valon is poised to capitalize on several significant opportunities, including expanding its loan origination and property insurance businesses. With plans to service over 20,000 consumers and $6 billion in mortgages by year-end, the potential for growth is substantial. The company’s borrower-centric platform and approval to service Fannie Mae loans position it well to disrupt the traditional mortgage servicing market.
Future fundraising efforts may be necessary to support strategic acquisitions and further technological advancements. However, Valon will need to navigate the complexities of the mortgage sector, maintain regulatory compliance, and manage rapid growth effectively. Competing with established players like Black Knight will also be a challenge.
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