A national title insurance escrow company, Spruce has secured $15.6m in new venture capital funding from investors such as Bessemer Venture Partners, Omidyar Network, and Collaborative Fund.
The funding has brought the startup’s total Series A financing to $19.1m. The first digital-native title company, Spruce will use the funding to continue growing its team and building its proprietary technology, which enables fast, frictionless, and secure real estate transactions.
Launched in 2016, Spruce is modernizing the antiquated, paper-based process of closing real estate transactions—an often overlooked, yet critical, part of the experience of buying a home or securing a mortgage.
Spruce co-founder and CEO Patrick Burns said: “A real estate transaction can be one of the most important moments in a person’s life, and for many it’s a process fraught with confusion, frustration, and unnecessarily high fees.
“We are building the modern solution to the current challenges faced by homeowners, mortgage lenders, and real estate companies alike. And thanks to our latest funding, we’ll have the opportunity to work with more people than ever before.”
Unlike other title companies, Spruce brings efficiency, transparency and security into transactions by allowing lenders and real estate companies to manage the title and closing process via intelligent APIs and by providing a digital closing experience to homeowners to manage their closing online. The company’s escrow technology allows transaction participants to receive their proceeds quicker and more securely than traditional companies. To date, Spruce has worked with lenders and real estate companies in 36 states and plans to reach 48 states by the end of 2018.
Bessemer Venture Partners partner Charles Birnbaum said: “We’re thrilled to continue to support the Spruce team as they look to expand their reach to serve more clients across the country.
“There is a lot of room to grow in this industry, and we’re confident that Spruce’s approach will continue to resonate with lenders and innovative real estate models looking for a more efficient, technology-driven solution.”
Omidyar Network venture partner Peter Rabley said: “Many people find home buying to be overwhelmingly complex and overloaded with paperwork.
“Spruce’s tech platform makes the process clearer, faster, and more enjoyable. We are excited by Spruce’s next phase of growth, putting more people in control of their most important asset.”
This latest funding comes after a Series A in 2017 that included Bessemer Venture Partners, Omidyar Network, and Collaborative Fund.
Source: Company Press Release