Better.com's valuation soars to $4B with latest round
November 11, 2020
Home mortgage provider Better.com has brought in $200 million at a $4 billion valuation, according to Bloomberg. The funding was reportedly led by PE firm L Catterton, with Ally Financial, American Express Ventures, 9Yards Capital, Activant Capital and Ping An also participating.
The New York-based company's worth has surged since February, when it was valued at an estimated $884.5 million after a $160 million round, according to PitchBook data.
Better.com operates an alternative lending platform that allows users to buy or refinance homes without loan commissions or lender fees. The company has benefited from an uptick in home-buying and refinancings this year amid record low mortgage interest rates.
As of Sept. 30, alternative lending startups in North America and Europe had picked up $3.7 billion in total VC financing for the year, according to PitchBook data. Non-bank lenders are not as regulated as other lenders, resulting in less limitation on capital requirements. This also allows non-bank lenders to enter the market and scale more quickly, according to PitchBook's latest Emerging Tech Research report on fintech.
Related read: Mega-deals underscore PE's growing embrace of VC deals in tech
The New York-based company's worth has surged since February, when it was valued at an estimated $884.5 million after a $160 million round, according to PitchBook data.
Better.com operates an alternative lending platform that allows users to buy or refinance homes without loan commissions or lender fees. The company has benefited from an uptick in home-buying and refinancings this year amid record low mortgage interest rates.
As of Sept. 30, alternative lending startups in North America and Europe had picked up $3.7 billion in total VC financing for the year, according to PitchBook data. Non-bank lenders are not as regulated as other lenders, resulting in less limitation on capital requirements. This also allows non-bank lenders to enter the market and scale more quickly, according to PitchBook's latest Emerging Tech Research report on fintech.
Related read: Mega-deals underscore PE's growing embrace of VC deals in tech