Vontive, a mortgage platform aimed at streamlining real estate investor transactions, announced that it had secured $135 million in Series B capital with the aim of expanding its operations.
Funding for the round was led by Zigg Capital, with additional backing from Founders Fund, Goldcrest, XYZ Venture Capital, 8VC, Nine Four Ventures, Village Global, Godfrey Capital and the LeFrak organization. The latest raise is $110 million in debt funding and $25 million in cash, according to Crunchbase.
The company, which is headquartered in both San Francisco and Seattle, has designed a platform to enable the flow of capital so that any retail lending company can start offering residential property mortgages. investment.
Vontive’s white-label solution, which can be integrated into a company’s app or website, should make the process of introducing investment mortgages easier using artificial intelligence to reduce the personnel, paperwork and time typically required to start up this type of unit. Vontive aims to be the “connective tissue” linking providers of capital with banks, credit unions and proptech companies originating loans.
“Major financial institutions want exposure to U.S. real estate, and the appetite for investment mortgage funding eclipses their ability to allocate capital efficiently,” said Charles McKinney, co-founder and CEO of Vontive, in a press release.
“Unlike mature fixed income markets, these institutions cannot electronically allocate capital through digital systems,” he added.
Founded in 2017 by McKinney, a former Freddie Mac executive, and Shreyas Vijaykumar, a former Palantir engineer who serves as Vontive’s chief technology officer, the fintech started operations a year later. The two men met when Palantir partnered with Freddie Mac to develop technology for managing mortgage loan losses during the US housing crisis. Vontive said it made a profit in 2021.
“We believe the real estate investment mortgage will eventually migrate to platforms that normalize the flow of credit from capital providers to borrowers via trustmarks,” Zigg Capital general partner Ryan Orley said of the support. of the company in Vontive. “Building such a platform requires an unusual combination of software engineering expertise, mastery of credit risk and knowledge of financial markets.”
Vontive said it plans to use the funding to expand its engineering team, add new partners to the platform, increase mortgage product offerings and create a debt marketplace for financial institutions to provide. cash.
Vontive’s announcement comes weeks after digital lender Beeline entered into a partnership with the Stessa property management platform to provide mortgages to its single family investor clients. Recent redfin data showed that the investment market strengthened at the end of last year, but some politicians also blame for the shortage of single-family dwellings available on the surge in such purchases.