Snapdocs does not try to disrupt the industry, but instead, it is trying to help the players work better together. The company aims to reduce the time borrowers spend at the closing table from over an hour to just 15 minutes by doing things like giving them the ability to review lengthy documents digitally beforehand.
FREMONT, CA: The AI-powered platform aimed at the digital mortgage closing process, Snapdocs, raised USD 25 million in a Series B funding round led by F-Prime Capital, with participation from previous investors Sequoia Capital and Founders Fund. This brings the San Francisco based startups total raised capital, since founding in 2012, to USD 43 million.
According to Snapdocs founder and CEO, the company does not try to disrupt the industry, but instead, it is trying to help the players work better together. The company aims to reduce the time borrowers spend at the closing table from over an hour to just 15 minutes by doing things like giving them the ability to review lengthy documents digitally beforehand.
“You have 12 different industries trying to interact to make a real estate transaction happen. We’re focused on helping those parties coordinate better,” King said. “Our goal has been to become the connective tissue to help those different industries improve their workflow in a more seamless, automated way by tackling the complex underlying machinery of the entire process.”
King emphasized that Snapdocs does not raise large amounts in capital funding as it is not one of those companies that burn tons of capital. “My last company was bootstrapped, so we have that in our DNA,” King said. "In almost every fundraising round, we've had opportunities to raise at higher valuations, but we believe if you're going to build a really enduring company, it's more important to pick the right partners." The company will make use of the new capital to help fuel growth and further invest in its technology. It’s also planning to grow its recently-opened Denver office.
As part of the funding round, David Jegen, managing partner of F-Prime Capital’s tech fund, will join Snapdocs’ board of directors. “Residential mortgage is a $2 trillion industry and one of the largest sectors yet to be digitized,” said Jegan. "The entire closing process is cumbersome and in need of a better workflow for collaboration, coordination, and transparency. Snapdocs has built the leading vertical SaaS solution to this problem and is well-positioned to become the industry’s platform for digital mortgage closings.”