Anyone who has gone through the mortgage application process understands the system is pretty broken. Beyond proof of financial ability, banks and other mortgage originators require many different documents to be reviewed and approved. A mortgage can take weeks, or months, to close – delays that are largely unnecessary.
Proptech firm Epoch Financial Group aims to fix this problem and it is raising growth capital on Republic.
According to the Reg CF offering page, Epoch hopes to raise up to $5 million in a “CrowdSafe” at a valuation cap of $18 million and a discount of 20%. A SAFE, or Simple Agreement for Future Equity, allows an issuer to raise money without providing a valuation. In brief, investors get to convert the CrowdSafe to equity at a later date but at a discount to a priced funding round. The securities offering is open to anyone with a minimum investment of $100 and up to $500,000.
On the offering page, Epoch explains their mission:
The home buying experience is fragmented for consumers, and they are often left more confused than when they started. The mortgage industry is one of the few industries where companies provide almost zero educational content to help consumers make an informed decision about their financial future.
Epoch also combines the pieces and parts of the mortgage process to deliver a turn key experience. Inclusive in the services is:
- Epoch Lending for mortgage loans
- Epoch Property Transfer
- Epoch Insurance
- Additionally, Epoch will white label its platform thus allowing traditional financial services to upgrade their mortgage making process
Epoch has some traction, according to the company. In 2021, Epoch funded 917 mortgages, both refis, and purchases, for $274 million up from $212 million in 2020.
If you are curious, you can review the offering page here.
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