Setpoint Announces $43 Million Series A Led by Andreessen Horowitz to Deliver Next-Generation Infrastructure for Asset-Backed Lending
NEW YORK, December 7, 2022 (Newswire.com) - Setpoint, the company building infrastructure for modern real estate transactions, today announced that it has closed a $43 million Series A led by Andreessen Horowitz with participation from Henry Kravis (KKR), Spencer Rascoff (co-founder Zillow & 75andSunny), Fifth Wall, 645 Ventures, NextView Ventures, LiveOak Venture Partners, Vesta Ventures, ATX Venture Partners and Capital Factory. The company also announced that it is on track to power 25,000 home transactions this year and expects to power more than 100,000 in 2023 via SFR, iBuying, Power Buying, Fractional Ownership, Rent-to-Own, and other transactions that make buying, selling, and renting a home easier, faster, and more accessible.
Setpoint is building the next-gen infrastructure for real estate and asset-backed lending. The company's software makes warehouse transactions instant and error-free. Setpoint is the funding operating system for originators: it verifies and stores documents, automates interest rate calculations, and digitizes assets like homes or autos. The company aspires to make credit more widely available and the underlying assets and loans more liquid.
"Behind many of life's most important transactions — buying or renting a home or starting a business — is a complex system of trust and credit. Each day, billions move between warehouse lenders like Goldman Sachs and companies like Flyhomes that originate loans. These warehouse transactions are powered by email, Excel, paper documents and software developed in the 1980s. In less than a year, Setpoint has made significant headway solving this problem within proptech, leading to tens of thousands of home sales, which we expect to more than quadruple in 2023," said Stuart Wall, CEO at Setpoint.
This new funding will allow Setpoint to invest in software engineering and develop critical tools for its customers on both sides of asset-backed transactions. Setpoint will continue to focus on relationships with borrowers and lenders to make transactions instant, automated, and error-free. The company also expects to expand outside of real estate by powering all asset-backed lending.
"We're thrilled to be partnering with the experienced team at Setpoint as they build critical software to power a more efficient asset-backed lending market," said David Haber, General Partner at Andreessen Horowitz. "While there's been much innovation and investment made upon improving the front-end of fintech transactions, behind-the-scenes capital market workflows are often a product of email, Excel, and FTP folders. I believe that Setpoint's Funding OS has the potential to significantly improve the efficiency of these transactions, resulting in lower cost for both borrowers and lenders."
"2023 is the perfect time to overhaul America's credit infrastructure. Near-zero interest rates during COVID helped consumers and businesses overcome high transaction costs but as rates rise, infrastructure and technology will be critical to ensuring trust and making credit available to PropTech companies and the people and businesses who need them," Wall added.
About Andreessen Horowitz
Andreessen Horowitz backs bold entrepreneurs who move fast, think big, and are committed to building the next major franchises in technology. Founded by Marc Andreessen and Ben Horowitz, the firm provides entrepreneurs with access to expertise and insights in innovation, executive and technical talent, market intelligence, business development, and marketing and brand building. Find us at www.a16z.com.
Setpoint is infrastructure for asset-backed lending. Founded in 2021, Setpoint's capital and technology platform enable proptech and asset-backed borrowers to offer next-generation home buying and credit options to consumers. To learn more, please visit setpoint.io.