American Express VC arm, Healthcare of Ontario pension back $70m Better Mortgage Series C

The VC arm of American Express and the Healthcare of Ontario Pension Plan (HOOPP) were among backers of a $70m Series C round for US digital mortgage lender Better Mortgage.

Kleiner Perkins, Goldman Sachs and Pine Brook also took part in the round, which follows a 2018 that saw Better originate $1.3bn in mortgages – an increase of about three-times compared to the previous year.

The company, which was launched in 2016, works on the premise that digitising the mortgage process removes inefficient aspects, and employs non-commissioned loan officer in order to put service over sales.

Amex Ventures managing director Lindsay Fitzgerald said, “Buying a home is one of the biggest financial life events that our customers experience, but the process is often full of pain points.

“By building a mortgage platform to be fully digital from the ground up, Better Mortgage has reduced the complexity around the homebuying process. We’re excited to support Better Mortgage’s next phase of growth.”

HOOPP’s Jennifer Shum added, “We believe Better Mortgage is uniquely positioned for exceptional growth in the marketplace and offers a valuable service to prospective clients.

“We were drawn to this investment because of its strong management team, the sophistication of its technology and the market opportunity.”

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