Title insurance platform Spruce Holdings has raised $15.6m in its latest venture growth round.
Investors to the round included Bessemer Venture Partners, Omidyar Network, and Collaborative Fund.
Following this capital injection, the company has raised a total of $19.1m for its Series A financing. Spruce’s initial Series A round closed last year, with contributions coming from the same batch of named investors as this new financing.
Capital from the round will be used to grow the Spruce team, and further the development of its technology to support securer real estate transactions. Its platform is currently used in 36 states, but Spruce hopes to reach 48 by the end of the year.
New York-based Spruce integrates with lenders to provide consumers with title insurance and escrow services which simplify the mortgage closing process. By using a data-driven approach, the company helps to offer a single location for the entire process and ensure transparency on both sides.
It works by a homeowner applying for a new mortgage and stating they want to use Spruce for title insurance, which protects the property rights of real estate owners.
Lenders can also benefit from the solution as its e-closing platform helps to ease workflows and automatically prompting both parties of looming close dates. The technology also has built-in compliance to ensure all quotes are TRID-compliant. Quotes and orders can be accessed through Spruce’s API.
Launched in 2016, Spruce also implements bank-level encryption and ALTA best practices in order to protect customer data and privacy.
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.”
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