The mortgage industry is ripe for disruption, and technology is driving the change. Mortgage tech startups are using innovative tools like AI, automation, and blockchain to simplify and streamline home lending processes, making them faster, cheaper, and more accessible.
In a market valued at over $13 trillion in the U.S. alone, investors who get in early on promising mortgage tech companies can potentially see massive returns before these startups go mainstream.
If you’re looking to diversify your portfolio and invest in the future of real estate and finance, here are 5 mortgage tech startups to keep an eye on — and possibly invest in — before they become household names.
1. Blend Labs Inc.
Overview: Blend is revolutionizing the mortgage process by automating and digitizing home loans from start to finish. This platform is used by banks and lenders to simplify the application process and speed up approvals. It integrates with lenders’ existing systems, eliminating the need for manual processing.
Why It’s a Good Investment:
Blend’s technology reduces operational costs for lenders and enhances the customer experience, which is essential in an industry traditionally bogged down by paperwork. It raised $300 million in a Series F round in 2021 and is valued at over $3 billion.
Where to Invest: Blend is currently privately held, but keep an eye on its upcoming IPO or secondary market opportunities. Check out Blend’s investor relations page: Blend Labs Investor Relations.
2. Better.com
Overview: Better.com is a digital mortgage lender that’s cutting out the middleman and enabling homebuyers to apply for, get approved for, and close on mortgages entirely online. It also offers refinancing and home equity loans.
Why It’s a Good Investment:
Better.com raised $500 million in a Series D funding round in 2021 and is valued at around $7 billion. The company has proven that consumers are ready to embrace the convenience and speed of digital mortgages, and it’s well-positioned to scale quickly.
Where to Invest: Better.com is in the process of going public through a SPAC merger with Aurora Acquisition Corp.. This could be your chance to buy shares early. Watch out for its public offering through the SPAC, which is expected to be one of the biggest fintech IPOs in 2025.
3. Roostify
Overview: Roostify is a SaaS platform that enables mortgage lenders to provide a fully digital and transparent experience for their customers. The platform streamlines the loan application process, providing tools for both borrowers and lenders to track progress, upload documents, and communicate seamlessly.
Why It’s a Good Investment:
Roostify is well-positioned to capitalize on the growing demand for digitized mortgage experiences, and its partnerships with big players like LendingTree and Zillow make it a strong contender in the space. They raised $32 million in a Series C round in 2021.
Where to Invest: While Roostify isn’t public yet, keep an eye on this growing company. They’re likely to either IPO or seek more strategic investments in the near future.
4. Orchard
Overview: Orchard offers a tech-enabled home buying platform that helps people buy a home before they sell their current one. By using data analytics and AI, Orchard helps people with everything from pricing their current home to finding a new one and securing financing.
Why It’s a Good Investment:
Orchard is innovating in the real estate market by integrating mortgage tech with home buying. In 2021, it raised $60 million in a Series C funding round. The company’s unique business model and scalable tech platform make it a standout in the competitive real estate tech space.
Where to Invest: Orchard is privately funded, but keep an eye on its future growth. If they pursue IPO or acquisition, it could be a lucrative investment opportunity.
5. Homeward
Overview: Homeward focuses on making the home-buying process more accessible by allowing people to buy a home before selling their old one, a challenge that many first-time buyers face. By using technology to facilitate these transitions, they enable consumers to access bridge loans without going through traditional banks.
Why It’s a Good Investment:
Homeward’s technology solves a common problem in real estate transactions, giving it strong potential to expand in a growing market. In 2021, it raised $25 million in a Series A funding round to further its mission.
Where to Invest: While Homeward is still privately held, it’s expected to grow rapidly in the coming years. If they pursue funding through venture capital or an IPO, investors could see substantial returns.
Conclusion
The mortgage industry is shifting towards digital solutions that make homeownership and lending faster, more efficient, and more affordable. Early investment in these mortgage tech startups could position you to profit from the fintech revolution in real estate.
If you’re ready to diversify your portfolio, these startups offer an exciting opportunity to get in on the ground floor of the next big thing in tech.
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