Denver-based digital mortgage startup Maxwell is looking to capitalize on a growing lending space by bringing on $52.5 million in new funding.
The round was led by Fin VC with participation from Wells Fargo Strategic Capital, along with existing investors Prudence, Rotor Capital and TTV Capital.
Maxwell, which was founded in 2015, has created a platform for local and regional lenders aimed at introducing more transparency and equality to the mortgage market.
Since its founding, Maxwell has facilitated over $150 billion in loan volume through its platform. And, as that adoption grows, Maxwell reported that its revenue grew by 2,752% over the past three years. That figure was enough to land the company at No. 154 on the annual Inc. 5000 list.
Prior to this funding, Maxwell most recently raised a $16.3 million Series B in April.
With that growing demand, Maxwell co-founder and CEO John Paasonen said it was the right time to bring on this capital.
“There is huge demand for digital solutions designed by mortgage experts specifically for small to midsize lenders across the country. This injection of capital will allow us to build that technology even faster to meet that demand,” he told Denver Business Journal. “We plan to dramatically scale our new offerings such as Maxwell Capital, which invests in the loans that our lenders originate, while continuing to hone comprehensive solutions that address the entire mortgage process.”
Paasonen added that in a recent data study with one of its clients, Maxwell’s software caused loans that went through its platform to get cleared for closing 14 days faster than loans that didn't use it.
“Wells Fargo is excited to invest in a growing company like Maxwell that has a targeted universe of clients throughout so many of our communities across the country,” Tom Richardson, head of strategic capital principal technology investments at Wells Fargo Strategic Capital, said in a statement. “This capital solution will help them achieve their business goals and continue to expand their product offering, and we look forward to seeing their continued success.”
Over the last three years, Maxwell has grown its staff by more than 14 times to nearly 270 employees across its Denver headquarters and Minneapolis, Dallas-Fort Worth and Raleigh-Durham.
With this additional funding, Paasonen said the company is set to grow to nearly 400 total employees by the end of next year, with hires across product and engineering, sales and marketing, and all of its solutions-oriented businesses. Currently, the company has 75 employees in Denver and expects that number to approach 120 by the end of 2022.
