Setpoint raises $43mn to overhaul real-estate transactions

Setpoint has raised US$43mn in Series A led by Andreessen Horowitz to continue building a new generation of infrastructure for asset-backed lending

Setpoint, a New York-based fintech that is building new infrastructure for real estate transactions and asset-backed lending, has raised US$43mn in Series A funding led by prominent technology backer Andreessen Horowitz.

Setpoint’s software makes warehouse transactions instant and error-free, transforming what is traditionally a manual process. Describing itself as “the operating system for originators”, the company, which exited stealth earlier in the year, is attempting to digitise the legacy system that underpins complex credit decisions – for example when buying a new home or setting up a business.

Its backend platform includes a suite of streamlined workflow tools that accelerate document collection and verification, automate manual closing processes, boost transaction throughput and reduce overheads.

The funding will allow Setpoint to invest further in software engineering and develop critical tools for their customers on both sides of asset-backed transactions. The firm will continue to focus on relationships with borrowers and lenders, while also expanding beyond its core market of real estate.

Raising capital at ‘the perfect time’ for Setpoint

“Behind many of life’s most important transactions – buying or renting a home or starting a business – is a complex system of trust and credit,” says Setpoint CEO Stuart Wall. “Each day, billions move between warehouse lenders like Goldman Sachs and companies like Flyhomes that originate loans. These warehouse transactions are powered by email, Excel, paper documents and software developed in the 1980s. In less than a year, Setpoint has made significant headway solving this problem within proptech, leading to tens of thousands of home sales, which we expect to more than quadruple in 2023.

“It is the perfect time to overhaul America’s credit infrastructure. Near-zero interest rates during COVID helped consumers and businesses overcome high transaction costs but as rates rise, infrastructure and technology will be critical to ensuring trust and making credit available to proptech companies and the people and businesses who need them.”

David Haber, General Partner at Andreessen Horowitz, adds: "We're thrilled to be partnering with the experienced team at Setpoint as they build critical software to power a more efficient asset-backed lending market. While there's been much innovation and investment made upon improving the front-end of fintech transactions, behind the scenes capital market workflows are often a product of email, Excel, and FTP folders. I believe that Setpoint's Funding OS has the potential to significantly improve the efficiency of these transactions resulting in lower cost for both borrowers and lenders."

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