Setpoint raises $43 million to overhaul real estate transactions

Setpoint, a New York-based fintech building new infrastructure for real estate transactions and asset-backed lending, has raised $43 million in Series A funding led by prominent tech back Andreessen Horowitz.

Setpoint’s software makes inventory transactions immediate and error-free, transforming what is traditionally a manual process. The company describes itself as “the operating system for originators”, and seeks to digitize the old system that underlies complex credit decisions – for example, when buying a new home or setting up a business.

The backend platform includes a suite of streamlined workflow tools that accelerate document collection and verification, automate manual closing processes, increase transaction throughput and reduce fixed costs.

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

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 – lies a complex system of trust and credit,” says Setpoint CEO Stuart Wall. “Every day, billions move between warehouse lenders such as Goldman Sachs and companies such as Flyhomes that provide loans. These inventory transactions are driven by email, Excel, paper documents and software developed in the 1980s. In less than a year, Setpoint has made significant progress in solving this problem in proptech, leading to tens of thousands of home sales, which we expect to more than quadruple by 2023.

“It’s 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 prices rise, infrastructure and technology will be critical to ensuring confidence and making credit available to proptech -companies and the people and businesses that need them.”

David Haber, General Partner at Andreessen Horowitz, added: “We are excited to partner with the experienced team at Setpoint as they build critical software to drive a more efficient capital-backed lending market. While there has been much innovation and investment made in improve the front-end of fintech transactions, behind-the-scenes capital markets workflows are often the product of email, Excel and FTP folders, I believe Setpoint’s Funding OS has the potential to significantly improve the efficiency of these transactions, resulting in lower costs for both borrowers and lenders.”