Closinglock, a fraud prevention tech provider for the real estate industry, announced it closed a $34 million Series B round.
The investment round was reportedly led by Sageview Capital and “supported by Headline and RWT Horizons.”
This financing will advance the company’s mission to power and “protect U.S. real estate transactions by securing the transfer of funds and information.”
To date, Closinglock has protected more than “1 million home sales worth over $500 billion, and the company’s Good Funds Payments tool has facilitated the secure transfer of more than $600 million in payments.”
Andy White, CEO and co-founder of Closinglock said:
“Buying a home is the largest investment most families ever make — but one fraudulent email could send your life savings right into the hands of a scam artist. We’re here to make sure that doesn’t happen. This latest funding round — and the 1 million transactions already secured by Closinglock — is another vote of confidence in the work we do.”
He added:
“This new funding will unlock the next chapter in our journey to power and protect all real estate transactions while ensuring the secure and seamless flow of funds in every deal.”
The Series B will allow Closinglock to evolve and expand, “particularly as the fraudulent use of artificial intelligence and deepfake content proliferates.”
In 2023, consumers reported nearly “$3 billion in losses from 31,000 real estate business crime and business email compromise complaints — the type of scams often deployed to infiltrate real estate transactions.”
With the average successful real estate fraud costing victims $143,000, Closinglock’s tools have “saved U.S. buyers and sellers more than $1.24 billion in avoided losses by preventing more than 8,250 fraud attempts.”
Closinglock has grown from secure wire instruction exchanges to offering solutions that “enhance real estate transactions.”
Its Good Funds Payments tool is the only tool in the market that allows homebuyers to “pay down payments and other funds from their desktop or mobile.”
Verified transfers are protected under Closinglock’s “enhanced insurance policy, covering up to $2.5 million.”
In 2024, Closinglock introduced enhancements, including an Early Deposit payment option and an “upgraded Identity Verification feature, generating over 400,000 identity reports.”
The company expanded its payment offerings through its J.P. Morgan partnership, announced “a partnership with Docusign, and improved seller bank account verification capabilities.”
Ned Gilhuly, founding partner of Sageview Capital said:
“We are thrilled to partner with Andy White and his exceptional team at Closinglock. Their innovative platform is transforming ID verification, eliminating wire fraud, and streamlining payments in real estate transactions. With near 25x growth over the past three years, and outstanding customer satisfaction ratings of 90%, it’s evident Closinglock is delivering exceptional value to its customers. We are excited to support the company in unlocking its full potential and driving further growth in the industry.”
Closinglock’s raise comes amid growth for the company – with its annual revenue increasing by “more than 25x over the past three years.”
In 2024, Closinglock reportedly doubled its Austin-based headcount “to 73 and is in the process of securing a new downtown office space.”
The firm said it now expects continued hiring and growth throughout 2025.