Setpoint, a Fintech and Proptech startup, announced Tuesday that it has closed on $31 million in additional funding.
Ben Rubenstein and Michael Lam, co-founders in Austin, and Stuart Wall, founder and CEO in New York, run the company.
The Series B funding came from 645 Ventures, which led the round, with strategic investments from Citi and Wells Fargo with Andreessen Horowitz, NextView Ventures, Floating Point, Henry Kravis, Zillow’s founder’s 75 & Sunny, Vesta Ventures, Fifth Wall, Altura Ventures and Outrunner Capital.
Setpoint has raised $76 million since its founding in 2021.
Setpoint’s capital and technology platform enables real estate, auto, consumer, and other asset-backed borrowers to offer credit options to consumers.
Setpoint automates debt facility management. It automates debt facility management. Setpoint’s software and platform verify assets and manage portfolios with real-time forecasting and optimization. It also manages collateral to track data, documents, lender requirements, operational workflows, and valuation management to automate and streamline BPO, appraisal, and AVM fulfillment.
Since its last funding round led by Andreessen Horowitz, Setpoint has achieved revenue growth six times year-over-year. It has added significant customers such as GreenSky, Carvana, Fundbox, Nomura, Capchase, Kyte, Archwest, and Pathway.
Setpoint’s platform and technology replace outdated methods of managing loan transactions like email, Excel, and FTP folders. Setpoint’s Asset OS software digitizes, organizes, and verifies data. Its complementary Capital OS software automates funding flows and compliance, setting a new standard for fast, accurate, and effortless credit transactions.
“While we’ve observed substantial innovation between borrowers and originators, originators and lenders still interact with the capital markets in relatively archaic ways. Setpoint’s software is poised to change that, driving efficiency and accuracy for major credit ecosystem stakeholders like Citi,” Patrick Brett of Citi Spread Products Investing Technologies (Citi SPRINT), who co-invested in Setpoint with Jeff Flynn of Citi Ventures, said in a news release.
In a statement, C. Thomas Richardson, Head of Principal Technology Investments at Wells Fargo Strategic Capital, said, “We are excited to provide growth capital and to expand our relationship with Setpoint. Their deep domain expertise allows them to continue developing relevant technology, which is enhancing the efficiency and automating the workflow of credit operations.”
645 Ventures, leading this round, played a critical role in bringing together a diverse group of investors. “Setpoint has become a cornerstone in the asset-backed ecosystem, earning the trust of the biggest financial institutions,” Jon Smith, Principal at 645 Ventures, said in a news release. “We are proud to lead this round and support their vision in redefining the credit infrastructure landscape.”
The company began in real estate and has since expanded into all asset-backed lending. Setpoint has also grown its Single Family Rental (SFR) and Residential Transition Loan (RTL) customer bases, providing solutions such as diligence, AssetOS, and CapitalOS to optimize the portfolios of leading real estate lenders. Facilitating nearly 100,000 transactions annually, Setpoint is approved by major rating agencies, including Moody’s, DBRS, KBRA, and S&P. Through its affiliated capital provider, Setpoint has funded over $3.5 billion in real estate transactions with proptech leaders like Homeward, OfferPad, Flyhomes, and UpEquity, all of which have been managed on the Setpoint platform.
Setpoint plans to use the new funds for research and development.
“Setpoint is building trust in our credit system,” Wall, CEO of Setpoint, said in a news release. “Our vision is to make credit transactions instant, automated, and error-free. This funding round, supported by leading financial institutions and investors, propels us forward in our mission to build the technology infrastructure for capital markets.”