FinTech News
Real Estate Transaction FinTech Closinglock Raises $34 Million
A FinTech that helps prevent fraud in the real estate transaction process has raised a new round of funding.
About the round:
This week, Closinglock revealed that it raised $34 million. The Series B was led by Sageview Capital with Headline and RWT Horizons also participating. To date, the company has now raised a total of $50 million, including a $12 million Series A one year ago.
With these new funds, Closinglock says that it intends to expand and evolve the platform as fraudulent uses of AI proliferate. As it notes, this will allow the company to advance its mission to protect real estate transactions.
About Closinglock:
Closinglock is a digital platform that aims to modernize and secure the process of completing real estate transactions. This includes assisting with wire transfers, earnest money delivery, eSignature collection, account payoff validation, and more. According to the company, to date, it has helped secure the purchases of more than 1 million homes worth a total of over $500 billion.
What they’re saying:
Discussing the need for Closinglock’s product, the company’s co-founder and CEO Andy White said, “Buying a home is the largest investment most families ever make — but one fraudulent email could send your life savings right into the hands of a scam artist. We’re here to make sure that doesn’t happen.”
As for the impact the Series B will have, White stated, “This new funding will unlock the next chapter in our journey to power and protect all real estate transactions while ensuring the secure and seamless flow of funds in every deal.”
Meanwhile, Sageview Capital founding partner Ned Gilhuly said of the investment, “We are thrilled to partner with Andy White and his exceptional team at Closinglock. Their innovative platform is transforming ID verification, eliminating wire fraud, and streamlining payments in real estate transactions… We are excited to support the company in unlocking its full potential and driving further growth in the industry.”
My thoughts:
As I said when I wrote about Closinglock’s Series A last year, having gone through the home buying process myself, I can definitely see where the company’s platform and services could come in handy. Knowing that so much is public record when it comes to real estate transactions, I can only imagine the opportunities for fraud.
As for the company, considering that Closinglock has now closed two successful rounds one year apart — and raised nearly three times as much in this Series B than they did last time — I think it’s safe to say that the company is well on its way to being a major FinTech player.
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