Vishal Garg founded Better Mortgage in 2016. Better.com is a commission-free, fee-less mortgage provider in which borrowers get rate quotes, apply for loans and sign required documents all online. The system allows borrowers to be preapproved for a mortgage in minutes rather than weeks.
The speed of their service allows home-buyers who are buying with a mortgage to compete with all-cash buyers. Better matches homebuyers with the institution buying the loan, and the institution pays Better for the service. Better also says they save borrowers money by reducing the costs through the platforms speed.
Vishal Garg has said the idea for Better Mortgage came when he and his wife lost out on the home of their dreams while caught up in the mortgage process to an all-cash buyer.
In June of 2016, Better Mortgage raised $30 million. Investors included Goldman Sachs Principal Strategic Investments Group, Pine Brook, KCK Group and IA Ventures. Better Mortgage used the funding to expand their geographic footprint and continued technological development.
In February 2017 Better Mortgage closed their Series B financing at $15 million. Kleiner Perkins, Goldman Sachs Principal Strategic Investments Group and Pine Brook invested in this round.
In a round which initially opened in January 2019, Better Mortgage closed their Series C round in August of 2019 with a total of $160 million raised. Activant Capital led the round which included participation from Ping An Insurance, Ally Financial, Citigroup, AGNC, American Express Ventures, Healthcare of Ontario Pension Plan, Goldman Sachs, Kleiner Perkins and Pine Brook.
This round brought Better Mortgage's total funding to $254 million and its late 2019 valuation to over $600 million. The funds were committed to Better Mortgages continued growth at scale and in product offerings.
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