Valon, which aims to make the mortgage process easier and more transparent, has collected $50m in its Series A round.
Andreessen Horowitz served as the lead investor, with participation also coming from Jefferies Financial Group, New Residential Investment Corporation, an affiliate of Fortress Investment Group LLC, and 166 2nd LLC.
In line with the deal, Andreessen Horowitz general partner Angela Strange and Blend president Tim Mayopoulos has joined Valon’s board of directors.
Valon recently received approval from Fannie Mae, the US’ Federal National Mortgage Association, to service its government sponsored home loans.
Funds from the round will be used to support hiring and building upon its operations.
Founded in 2019, the company has built a software platform that provides borrowers with transparent access to information to improve the mortgage process. They can access their mortgage information and manage their payments from wherever they are, while lenders can access to real-time API data feeds to view performance of their borrowers and reconcile transaction data.
The technology, which connects originators, servicers, lenders and payers, boasts tamper-proof audit trails and automates requirements of servicing a mortgage.
Valon co-founder and CEO Andrew Wang said, “We’re on the cusp of a mortgage foreclosure crisis comparable to 2008, and the majority of homeowners struggling to make their loan payments are unaware of their options.
“Currently, the largest mortgage servicing software controls more than half of all U.S. residential loans, effectively creating a monopoly in the market. This stranglehold has driven servicing costs up nearly 250% in the past decade, and the fees are passed on directly to the borrower. We created Valon as a challenger brand to address the extreme need for an updated, technology-enabled alternative to keep the borrower better informed.”
With the close of the round, the company has raised a total of $53m in funding.
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