UpEquity, a U.S.-based tech-enabled mortgage platform creating a better way to buy a home, announced on Thursday it raised $25 million through its Series A funding round, which was led by Next Coast Ventures. According to UpEquity, the funding consists of $7.5 million of equity financing and $17.5 million of venture debt.
Founded in 2019 by Tim Herman and Louis Wilson while they were attending Harvard Business School, UpEquity was notably created out of a passion to solve the broken home buying process.
“UpEquity empowers customers to close offers fast by leveraging its proprietary combination of free cash offers, automated underwriting and low mortgage rates. Even first-time homebuyers receive access to the best houses on the market, in turn democratizing the American Dream.”
UpEquity further noted that it provides buyers with free cash offers, boosting purchasing power even for first-time homebuyers. The company explained instead of requiring buyers to have an existing house for sale, which is the current proptech industry-standard, UpEquity provides both a cash offer and a mortgage. Speaking about the investment, Thomas Ball, Managing Director at Next Coast Ventures, stated:
“As real estate continues to evolve in the face of limited supply and tight competition, UpEquity is at the helm of PropTech’s growing capabilities. Most innovation has focused on the front end, but until now, nobody has expedited what happens after the borrower submits an application. UpEquity has the team, talent and technology to not only succeed, but to disrupt and emerge as the leader in the mortgage lending marketplace.”
UpEquity added it intends to use the funding for product development and business development with market-leading real estate agents and to further reduce their time-to-close to 10 days.