Fraud Prevention FinTech Closinglock Raises $12 Million
A FinTech that looks to reduce fraud in real estate transactions has raised a new funding round.
About the round:
This week, Closinglock announced that it had raised $12 million round of funding. The Series A was led by Headline with participation from LiveOak Ventures, RWT Horizons, and GTMfund. With a seed round in 2022, the company has now raised a total of $16 million. According to Closinglock, the new funds will further allow them to pursue their mission “to revolutionize the transfer of funds and information in real estate.”
Austin-based Closinglock offers anti-fraud solutions to the real estate industry via a secure platform. Using the service, companies can share wire instructions, receive earnest money and cash-to-close payments, and validate payoff accounts. Additionally, its tools support identity verification as well as the ability to share documents, collect digital signatures, and more.
According to Closinglock, the platform is already used by more than 400 title companies and law firms. It’s also used by several leading providers, including J.P. Morgan.
What they’re saying:
Commenting on the new round, Closinglock co-founder and CEO Andy White said, “This Series A funding is a testament to the dedication and expertise of our team, as well as the relevance of our solutions in combating fraud in real estate. We are thrilled to add Headline as a partner as we continue to innovate and strengthen our offerings to better serve our clients.”
Additionally, Headline partner King Goh said of the firm’s investment, “When we first met with Closinglock, we were immediately impressed with their dedication to solving the increasingly complex problems in real estate – spanning fraud, trustworthy payments and software. Complemented by their industry expertise, technology and product depth, we knew right away that Closinglock was up to this challenge.” Goh concluded, stating, “We couldn’t wait to partner with them and get started.”
Although I can’t speak to the anti-fraud aspect of what Closinglock does, having recently gone through the homebuying process, I actually do understand the services they speak of. While we were able to wire funds, e-sign documents, and more, I can see how having all of these tools under one roof would have been helpful. If that’s the case on the consumer end, I can only imagine how much easier it makes things for title companies.
Based on this Series A, it sounds as though Closinglock has a solid product that is sure to grow from here. Plus, despite home sales slowing now, surely the company will see more business when things pick back up.