Austin proptech company Setpoint came out of stealth in the spring with $615 million in debt funding to help other real estate tech companies buy properties on behalf of their clients.
On Dec. 7, it announced it has raised $43 million in series A funding led by one of the world's best-known venture capital firms, Andreessen Horowitz, aka a16z. Other investors included KKR co-founder Henry Kravis and Zillow co-founder Spencer Rascoff, as well as Fifth Wall, 645 Ventures, Vesta Ventures and NextView Ventures. Austin's LiveOak Venture Partners, ATX Venture Partners and Capital Factory were also in on the round.
Setpoint is led by CEO Stuart Wall, who previously co-founded Signpost, and Ben Rubenstein, who is a co-founder and president. Rubenstein previously was co-founder and CEO of Austin-based real estate tech startup Opcity, which was acquired by a News Corp subsidiary for $210 million in 2018. Before that, he was a co-founder at Yodle, which was acquired by Web.com for $342 million in 2016.
Setpoint's platform tracks assets and stores property collateral throughout the closing process, as well as verifying documents from all parties and backing cash offers based on buyer and property qualifications with contingent-free all-cash offers. Its users include Homeward, Flyhomes, Reali and Houwzer. Setpoint says it's expecting to power 25,000 home transactions by the end of the year and more than 100,000 next year.
The new money will help it beef up its software engineering team and develop new tools for its customers on both sides of asset-backed transactions.
"While there's been much innovation and investment made upon improving the front-end of fintech transactions, behind-the-scenes capital market workflows are often a product of email, Excel, and FTP folders," Andreessen Horowitz General Partner David Haber stated. "I believe that Setpoint's Funding OS has the potential to significantly improve the efficiency of these transactions, resulting in lower cost for both borrowers and lenders."
