Setpoint, the leading infrastructure provider for the credit
industry, today announced the successful completion of its $31
million Series B funding round. 645 Ventures led the round, with
significant strategic investments from Citi and Wells Fargo,
alongside Andreessen Horowitz, NextView Ventures, Floating Point,
Henry Kravis, Zillow founder’s 75 & Sunny, Vesta Ventures,
Fifth Wall, Eltura Ventures, and Outrunner Capital. This funding
round brings Setpoint's total capital raised to $76 million,
demonstrating its role as the preferred technology partner for the
world's largest financial institutions and users of capital.
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Setpoint Founders (Graphic: Business
Wire)
Setpoint's industry-defining approach to automating debt
facility management is rapidly becoming the new standard for the
asset-backed industry. The company transforms the archaic backbone
of managing credit facilities into a streamlined, error-free
system, addressing a critical need in the market.
Since its last funding round led by Andreessen Horowitz,
Setpoint has achieved remarkable milestones, including a 6x
year-over-year revenue growth, and has added major customers such
as GreenSky, Carvana, Fundbox, Nomura, Capchase, Kyte, Archwest,
and Pathway among others.
Many of life’s most important transactions — whether purchasing
a home, obtaining a small business loan, or refinancing a credit
card — depend on a complex network of trust and credit
relationships. Leading investment banks and credit funds manage
trillions of dollars daily through warehouse facilities,
securitization issuances and whole loan purchases. However,
managing these transactions often relies on outdated methods like
email, Excel, and FTP folders, leading to errors and inefficiencies
that impede growth and drive up the costs of lending and
borrowing.
Setpoint is on a mission to change this. Its Asset OS software
digitizes, organizes, and verifies data, creating a real-time asset
source of truth. Its complementary Capital OS software automates
funding flows and compliance, setting a new standard for fast,
accurate, and effortless credit transactions. Designed for
scalability, Setpoint distinguishes itself by empowering borrowers
and lenders to easily navigate various complex financial
arrangements, including forward flows, senior and subordinate
warehouse financing, and both public and private
securitizations.
“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,” said Patrick Brett of
Citi Spread Products Investing Technologies (Citi SPRINT), who
co-invested in Setpoint with Jeff Flynn of Citi Ventures.
C. Thomas Richardson, Head of Principal Technology Investments
at Wells Fargo Strategic Capital, added, "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," said Jon Smith,
Principal at 645 Ventures. "We are proud to lead this round and
support their vision in redefining the credit infrastructure
landscape.”
The company began in the real-estate world 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.
The newly raised funds will be channeled into research and
development, with a focus on expanding Setpoint's engineering and
data science teams. By leveraging machine learning and large
language models (LLMs), Setpoint aims to enhance the verification
of asset data and calculations, driving further innovation in the
credit infrastructure space.
"Setpoint is building trust in our credit system," said Stuart
Wall, CEO of Setpoint. "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."
To get in touch with the Setpoint team, reach out to us
here.
About Setpoint
Setpoint is a leading fintech that aims to streamline the
hidden, cumbersome processes behind trillions in daily financial
transactions. Backed by leading investors, Setpoint is pioneering
the transformation of capital markets workflows from outdated
manual systems to efficient, automated solutions, significantly
reducing costs and enhancing speed for both borrowers and lenders.
Founded in 2021, Setpoint’s capital and technology platform (Asset
OS and Capital OS) enables auto, consumer, SMB, real estate and
other asset-backed borrowers to grow profitably. Setpoint’s
platform helps originators and lenders save time, reduce risk, and
optimize for capital efficiency. To learn more, please visit
www.setpoint.io.
About 645 Ventures
645 Ventures is an early-stage venture capital firm that
partners with exceptional founders who are building iconic
companies. We invest at the Seed and Series A stages and leverage
our Voyager software platform to enable our Success team and
Connected Network to help founders scale to the growth stage.
Select companies that have reached the growth stage include
Iterable, Goldbelly, Resident, Eden Health, FiscalNote, Lunchbox,
and Squire. 645 has $550m+ in AUM across 5 funds, and is growing
fast with backing from leading institutional investors, including
university endowments, funds of funds, and pension funds. The firm
has offices in New York and SF, and you can learn more at
www.645ventures.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240813720509/en/
Media Audrey Song, Director of Marketing
audrey@setpoint.io