Lakestar leads seed funding round for online mortgage platform Lenda


Online mortgage platform Lenda has raised $2 million in seed funding. Lakestar led the round with participation from other investors that included Rubicon Ventures and 500 Startups.

PRESS RELEASE

SAN FRANCISCO, CA (November 24, 2015) – Lenda, the first platform that allows homeowners to refinance their mortgage completely online, today announced the close of $2 million in seed funding led by Lakestar and existing investors including Rubicon Ventures and 500 Startups.

Since graduating tech accelerator 500 Startups in summer 2014, Lenda has grown 20 percent month over month to surpass $60 million in loans processed for homeowners in California, Washington and Oregon, with additional states launching early next year. Lenda’s software enables homeowners to transparently compare loan options, receive a free credit report, securely upload documentation, and check loan status in real time. This reduces the traditional time to close from 2 months to 2.5 weeks, saving an average of $20,000 in fees per borrower.

“Despite the exponential growth of online lending products and services in the U.S., the mortgage industry has been one of the slowest to adapt to consumer demands for easier, faster and more transparent experiences,” said Jason van den Brand, Co-Founder and CEO of Lenda. “Homeowners can complete an entire mortgage application within 45 minutes from their computer, 24/7, and have their loan funded in under three weeks while saving tens of thousands of dollars.”

By bringing the entire process online, Lenda has the ability to close loans nearly three times faster — and is saving consumers between .125 to .25 percent less on interest and APR when compared to the mortgage interest and fees from legacy banks. The company’s platform, which educates its users throughout the entire process, also has licensed representatives available for homeowners who prefer to have any questions answered by live chat, email, or phone. Looking at total savings, Lenda’s clients have collectively saved over $450,000 in fees and over $3M in interest over the lives of their loans.

“After looking at over 50 real estate technology companies worldwide, Lenda is now our third investment in the space. We love their product and customer-first approach and their 20 percent monthly rate of growth is exceptional for such a young company,” said Manu Gupta, General Partner at Lakestar.

Lenda was co-founded by CEO, Jason van den Brand and CTO, Elijah Murray. Jason has spent 11 years in the mortgage industry and previously founded two companies related to the sector.

For more information on Lenda, visit www.lenda.com

About Lenda
Lenda is a first-of-its-kind platform that allows homeowners to complete their home loan online from start to finish. The software enables homeowners to compare loan options, complete their application, securely manage documents, and keep track of their loan’s status. Customers claim that the user-friendly online experience helps save time and money while providing for a productive, pleasant mortgage experience. For more information about Lenda, visit www.lenda.com.

About Lakestar
Lakestar makes early and growth-stage investments in disruptive, technology-enabled businesses predominantly in Europe and the United States, which are driven by exceptional entrepreneurs. Lakestar and its general partners have recently invested in SoFi, Cadre, Symphony, Taulia, Algomi, GoEuro, Maker Studios, and Harry’s Shaving. Historical investments include Facebook, Spotify, Skype, AirBnB, Oscar Health, Klarna, and King.com. The Lakestar team is on the ground in New York, London, Berlin, and Zurich.

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