The Venture Codex

Participated · Equity · Nov 2021

Valon is a vertically integrated mortgage servicing platform that delivers an end-to-end modern servicing software for mortgage servicers and homeowners. The company says its platform drives superior operational efficiency and meaningful operating margin improvements for both Valon and its clients. Valon has grown 400% year-over-year and now services over $65 billion in mortgages, making it a top 15 U.S. subservicer. It has launched new consumer businesses in property insurance and property tax appeals and reports a refinance recapture rate consistently above the industry average. The company plans to use new funding to accelerate product development, double down on technology, expand market presence, and increase consumer cross-sell to potentially double or triple the total addressable market for mortgage servicers. Valon was founded in 2019 and is headquartered in New York City. Valon operates a tech-enabled residential mortgage servicing platform designed to give borrowers an intuitive, self-service interface supported by expert customer service. Its software automates servicing requirements such as disclosures, loss mitigation and payoff to increase borrower engagement and reduce costs. The company plans to use new funding to hire, build a loan originations and property insurance business, and pursue potential strategic acquisitions. Valon has secured approvals from government-sponsored enterprises (including Fannie Mae, Freddie Mac and FHA) to service federally backed loans and is the first fintech mortgage servicer approved by all GSEs. The company expects to service approximately 20,000+ consumers and $6 billion in mortgages by year end. Founded in 2019, Valon operates in 49 states and has grown its headcount to about 100 employees (two locations: New York and Tempe, AZ), with plans to expand to 200 by 2022. Valon operates a cloud-native, borrower-oriented mortgage servicing platform built on Google Cloud that offers self-service capabilities for homeowners and real-time API feeds for lenders. The company claims its vertically integrated technology can cut servicing costs by up to 50% and emphasizes security features like encryption and intrusion detection. Valon was founded in June 2019 by Andrew Wang, Eric Chiang and Jon Hsu and currently operates in 49 states, expecting to add New York this year. Management says the business went from no contracts to $10 billion in mortgages committed to be serviced within a year. The platform targets antiquated incumbents by replacing clumsy websites and call centers with a mobile-first, software-driven servicing experience. Valon plans to use new capital to triple headcount to about 100 and to acquire additional mortgage servicing rights (MSR) contracts.

Participated · Series A · Sep 2017

Matic operates a digital insurance marketplace that integrates insurance into the home and auto ownership journey and partners with carriers and distributors to embed coverage in consumer workflows. Founded in 2014, the company works with more than 70 carrier partners and over 100 distribution partners across mortgage origination and servicing, banking, real estate, and personal finance. Matic recently acquired Policygenius’s property and casualty book of nearly 30,000 policies, adding scale to its personal-lines footprint and onboarding those customers to its carrier marketplace and dedicated customer service team. With a new minority investment from Primus Capital, Matic plans to invest in its proprietary platform, broaden its embedded partnerships, and pursue additional acquisitions. The company’s current financial details and valuation were not disclosed in the reporting.