UpEquity Secures Warehouse Facility from Silicon Valley Bank and Setpoint
- New $200 million warehouse facility secured, supporting $1 billion in originations over 2 years
- Revenue has tripled annually since October 2023
- Strategic expansion of partnerships with mortgage lenders, real estate brokers, and home builders
- Continued relationship with established financial partners (SVB and Setpoint) demonstrates business stability
- None.
Insights
SVB and Setpoint's $200M warehouse facility to UpEquity signals strong institutional backing for mortgage tech innovation amid housing market challenges.
The $200 million warehouse facility provided by Silicon Valley Bank (SVB) and Setpoint to UpEquity represents a substantial vote of confidence in the mortgage technology company's business model. This facility is expected to support $1 billion in originations over the next two years, providing significant operational runway for UpEquity's "buy before you sell" mortgage solutions.
The financing comes at a strategic time for UpEquity, which has demonstrated impressive growth, with revenue tripling annually since launching its innovative product in October 2023. This growth trajectory indicates strong market demand for solutions that address the common homebuyer pain point of coordinating the sale of an existing home while purchasing a new one.
This warehouse facility is particularly significant as it provides the capital necessary for UpEquity to scale its operations through planned expansions with mortgage lenders, real estate brokers, and home builders. These strategic partnerships are crucial for the company's distribution strategy and market penetration.
For First Citizens Bank (FCNCA), this transaction aligns with SVB's specialty in serving innovative fintech companies through tailored financial solutions. The deal showcases how traditional banking institutions are supporting technology-driven solutions in the mortgage industry, potentially creating new revenue streams in the real estate financing ecosystem while addressing friction points in the traditional home buying process.
The partnership with Setpoint, which has been supporting UpEquity since 2023, adds further credibility to the mortgage tech company's business model and indicates continued confidence from existing financial partners.
Financing led by SVB's National Fintech Practice
The new facility supports UpEquity's continued high growth trajectory. The company's revenue tripled annually since it began offering its innovative 'buy before you sell' solutions in October 2023. UpEquity expects to continue this growth rate by expanding strategic partnerships with mortgage lenders, real estate brokers, and home builders.
"We are thrilled to work with Silicon Valley Bank and expand our relationship with Setpoint," said Timothy Herman, CEO of UpEquity. "The strong demand for our product reflects how well it meets our partners' and customers' needs. This new facility will allow us to help more customers with a smoother transition from their old home to the next."
"With their innovative financing solutions and platform, UpEquity is helping real estate professionals close significantly more transactions by solving the challenge of buying and selling a home at the same time," said Brian Foley, Market Manager for SVB's Warehouse and Fintech group. "SVB is excited to work with UpEquity and provide them with the financial solutions they need to continue to scale and grow their business."聽
"UpEquity gives homeowners a fast, streamlined path to their next home鈥攗nlocking equity and eliminating friction in the process," said Kendall Ranjbaran, Managing Director of Investments at Setpoint Capital. "We've been proud to support UpEquity with tailored financing solutions since 2023 and are excited to deepen our partnership as they enter this next chapter of growth."
A leader in serving the fintech industry, Silicon Valley Bank provides clients with specialized banking services, specialty financing and payment solutions including venture debt, warehouse lending, payment processing, and APIs.聽
About Silicon Valley Bank鈥�
Silicon Valley Bank (SVB), a division of First Citizens Bank, is the bank of some of the world's most innovative companies and investors. SVB provides commercial banking to companies in the technology, life science and healthcare, private equity and venture capital industries. SVB operates in centers of innovation throughout
About UpEquity
UpEquity gives homebuyers more negotiating leverage and certainty when they are buying and selling a home at the same time. Through the Trade Up Program homebuyers can make their bids more competitive with non-contingent offers. UpEquity's Equity Advance program allows homebuyers to access the equity in their old home to use for a downpayment on the new home. The Company's products are delivered through its AI-powered platform, which has allowed UpEquity to scale quickly, while achieving profitability, without adding significant headcount.
About Setpoint
Setpoint Capital is an investment manager focused on asset-backed private credit opportunities enabled through the Setpoint Technologies platform that provides unique value through technology, operations and insights. As an investment manager and direct lender (through its affiliates), Setpoint Capital integrates financial expertise with operational excellence to create capital solutions that enhance efficiency for its partners and investors.
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SOURCE Silicon Valley Bank
FAQ
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