Mortgage startup Tomo secures $40m seed
A fintech startup aiming to overhaul the “lousy” mortgage process has raised $40m in seed funding.
Tomo Networks was founded by CEO Greg Schwartz and CRO Carey Armstrong, former executives at online real estate firm Zillow. Their digital mortgage platform aims to sit neatly between consumers and real estate agents to streamline the often byzantine financial processes at the heart of buying a home.
The company says it will remain human-driven, but technology-enabled. It aims to deliver a system that preempts and smooths out friction during the mortgage process - based, it says, on omotenashi, the Japanese philosophy of meeting guests’ needs before they arise.
“Ripe for change”
Nick Huber, partner at Ribbit Capital, which led the seed funding, believes this aspect of real estate is “ripe for change”. Other investors in the round include NFX, Zigg Capital and SVB Capital.
CEO and founder Schwartz says: “Buying a home is a lousy experience. Despite years of tech companies focusing on real estate, the overall process has not changed enough.”
Instead, Schwarz says, Tomo will deliver “the efficiency of a tech-enabled real estate transaction and the intimacy of having a team of elite professionals on our side.”
Funds will be used for a nationwide hiring process in the US, with plans to centre teams in Austin, TX, Seattle, WA, and Stamford, CT.
Mortgage fintech funding 2020
Investment in digital mortgage services has accelerated in 2020. Here are just some of the most successful rounds this year:
Service: Digital mortgage lending
Capital raised: GBP£266m, Series A Round, October 2020
Where : UK
Service: Digital mortgage lending and broking
Capital: GBP£35m, Series C Round, August 2020
Service: Digital mortgage provider
Capital: AUD$33m, Seed Round, May 2020
The FinTech Show: Bitcoin, crypto mining, and payments
In episode six of the FinTech Show (originally broadcast live on 11 June at 2pm BST), Scott Birch and Will Girling discuss:
- El Salvador becoming the first country to make Bitcoin legal tender
- China's decision to clamp down on crypto mining operations
- The new developments in post-COVID payments, including the EU's decision to give every citizen a digital wallet
We also explore the newly released June '21 edition of FinTech Magazine, including a special look at our profile piece on HOOPP and the future of small business lending (guided by iwoca). Special thanks go to Valeria Simantob for providing the front cover of that issue.
Before you go! Follow us on LinkedIn and make sure to tune in on 25 June for the next FinTech Show.