On Tuesday, Boulder-based Neat Capital announced the closing of its $22.5 million Series B funding round. The round was led by Left Lane Capital and brings the company’s total capital raised to $37.2 million.
Neat Capital has created a tech platform that helps guide people through the process of getting a mortgage. Traditionally, this is a multi-step process that involves a lot of paperwork and back and forth between borrowers and lenders. But Neat Capital aims to get people through the loan process in a single session by automating the property pricing, loan production and underwriting process. As a result, the company claims that it can close on a mortgage 3x faster than the competition.
Giving out mortgages have been a significant source of revenue for lenders for decades. But there’s recently been a big uptick in the number of people applying for these mortgages. So it’s in the best interest of these mortgage companies to move quickly and sign as many people up for mortgages as they can. That makes automated tools like Neat Capital very valuable for these lenders.
“Mortgage is a $3.2 trillion annual market opportunity that is still fueled by an antiquated approach to lending that results in a frustrating consumer journey. There is incredibly strong client demand for a better experience. Our growth has been nothing short of explosive, and we’ve far exceeded the organic growth trends in the industry with a pipeline swelling with more than 10x annual growth,” CEO and founder Luke Johnson said in a statement. “This new financing will help meet client demand, which has outpaced expectations, and support the continued growth and expansion of Neat Capital across the United States.”
The company added that this new funding will be used to add new distribution sources and scale its operations. That includes hiring for a handful of roles across its Connecticut and California offices, as well as its Boulder HQ.
