Participated · Series C · Aug 2019

Better.com is a digital mortgage lender that is going public via a SPAC and has recently broadened its offerings to include insurance products. The company amended its financing agreement with SPAC backer Aurora Acquisition Corp. and SoftBank to accelerate funding and bolster its balance sheet. Under the new arrangement Better will receive half of a committed $1.5 billion immediately, and the company expects to have $1 billion in cash on its balance sheet by week’s end. The amendment replaces a prior structure in which approximately $950 million of a $1.78 billion committed financing package would have been used to purchase existing shares rather than fund the company directly. Better says the revised terms do not change its implied valuation of $6.9 billion. Management says the capital will be used to double down on existing businesses, build a custom-first home purchase experience and launch new post-close homeownership products and services. Better.com operates an online mortgage platform focused on digitizing home-loan origination and refinancing. The company says the pandemic and low rates accelerated demand, driving rapid growth in loan volume and staff. Better.com funded $25 billion in loan volume in 2020, funded $14 billion in Q1 2021, and is currently funding over $4 billion in loans per month. Headcount has expanded quickly — the company reported about 4,000 employees in October 2020 and says it now has roughly 6,000 employees. Management has discussed and been reported to be pursuing an IPO, and the company has engaged Morgan Stanley and Bank of America in planning. Better.com has raised over $900 million in total funding since its 2014 inception. Better.com digitized the mortgage process to provide a commission-free, transparent, digital model for financing homes. The company offers mortgage origination plus integrated access to title insurance, homeowners insurance and real estate agents on its platform. Better.com says it has funded $25B in home loans to date and provided over $7B in cumulative insurance coverage through its insurance divisions. Over the last year the company has grown its funded loan volume more than fourfold. Founded in 2016 and headquartered in New York, Better.com emphasizes growing its team and building out its technology to improve the homeownership experience. The company has raised over $400M in equity capital since inception. Better.com is a technology-driven homeownership platform that digitizes the mortgage process with eSign, instant loan estimates, rapid pre-approvals and non‑commissioned loan consultants. The company says it can close a typical mortgage in 21 days versus an industry average of 42 days and advertises average borrower savings of more than $3,000 up front. Founded in 2016 by Vishal Garg after a slow traditional mortgage experience, Better.com emphasizes speed, lower costs and end‑to‑end digital workflows. It has grown 3x year‑over‑year, is funding about $375 million in mortgages per month, funded $1 billion of loans in Q2, and is on track to lend over $4 billion in 2019; since inception it has funded more than $4 billion in loans. The company closed a $160 million Series C, bringing total funding to $254 million, and plans to use capital to accelerate product development, expand partnerships, grow the team and scale the platform. Better.com recently moved its headquarters to 7 World Trade Center and has opened additional offices in Irvine, Oakland and Charlotte. Better.com operates an online mortgage platform focused on streamlining mortgage origination and delivering a digital customer experience. The company recently struck a strategic partnership with Ally Bank in which Better will handle most of Ally’s housing loan operations. Ally Bank’s investment arm, Ally Ventures, is investing $20 million as part of the deal. That $20 million is an add-on to Better.com’s $75 million Series C from earlier this year and the transaction values the company at about $550 million. Better.com originated $1.3 billion in mortgages across 30 states last year (triple the prior year) and expects to reach $3 billion in mortgage originations in 2019. The company plans to pilot the new capabilities in nine states and roll them out across the U.S. by the end of 2019. Founders and senior leaders named in the article include CEO Vishal Garg, head of operations Eric Wilson, CTO Erik Bernhardsson, and head of financial products Viral Shah.

Participated · Equity · Dec 2017

ATX Energy Partners is a newly formed oil and gas exploration and production company headquartered in Austin, Texas and the successor to Brigham Resources. The company intends to pursue early-stage and emerging unconventional resource opportunities in the lower 48, leveraging operational capabilities from prior work in the Southern Delaware Basin and the Williston Basin. Management is led by CEO Gene Shepherd, who brings over 35 years of financial and operational energy experience and previously led Brigham Resources and Brigham Exploration. The senior executive team includes Erik Hoover (COO), J Silva (CFO), Ed Parma (EVP–Exploration) and Matt Weber (EVP–Engineering), all of whom worked together at Brigham Resources. Financially, ATX has secured a line of equity financing of up to $780 million to support its exploration and development activities. The company plans to leverage its leadership and financial sponsors to identify, delineate and develop unconventional plays in both familiar and overlooked basins.

Led · Equity · Sep 2014

Kapitus is a NYC-based provider of financing for small and medium-sized businesses, operating both as a direct lender and a marketplace. The company and its network of financing partners offer term loans, sales-based financing, SBA loans, equipment leases, and revolving lines of credit. Kapitus has provided over $6 billion in growth capital to almost 55,000 small businesses. It closed a $45M investment-grade corporate note financing, bringing total debt facilities to $585M. Proceeds will be used to expand its portfolio of financing products and to make further technology investments in its funding platform. The business is led by CEO Andrew Reiser and CFO Anthony Rose. Kapitus provides individualized small-business financing as both a direct lender and a marketplace, offering term loans, sales-based financing, SBA loans, equipment leases and revolving lines of credit. Founded in 2006, the company has provided over $4 billion in growth capital to more than 50,000 small businesses. Kapitus reported its highest funding volume in its 16-year history in 2021 and says growth has continued in 2022 with record application and funding volume each month. The company has expanded operations globally, opening an administrative office in India. Kapitus also runs programs to support small businesses, including the Building Resilient Businesses Initiative which will award $250,000 in grants. Its recent increase in funding capacity is intended to expand its ability to finance small-business growth. Strategic Funding Source provides direct financing—loans and cash advances—to small and midsize businesses, combining advanced technology with industry experience and human insight. Since its founding in 2006 and headquartered in New York City, the company has financed approximately $700 million and served thousands of small-business clients across the U.S. and Australia. It maintains regional offices in Virginia, Washington state, and Florida. The company plans to use new capital to continue rapid growth, enhance its technology, and deliver more capital to small businesses both in the U.S. and internationally. Management will continue to hold a significant ownership stake following the transaction.