Closinglock, a fraud prevention technology provider for the real estate industry, announced it has closed a $34 million Series B funding round. This funding was led by Sageview Capital and supported by Headline and RWT Horizons.
This new funding will advance the company’s mission to power and protect U.S. real estate transactions by securing the transfer of funds and information. So far, Closinglock has protected over 1 million home sales worth over $500 billion, and the company’s Good Funds Payments tool facilitated the secure transfer of more than $600 million in payments.
The Series B funding will enable Closinglock to evolve and expand, particularly as the fraudulent use of AI and deepfake content proliferates. In 2023, consumers reported nearly $3 billion in losses from 31,000 real estate business crimes and business email compromise complaints as the type of scams often deployed to infiltrate real estate deals. With the average real estate fraud costing victims $143,000, Closinglock’s tools have saved U.S. buyers and sellers over $1.24 billion in avoided losses by preventing more than 8,250 fraud attempts.
Closinglock grew from secure wire instruction exchanges to solutions enhancing real estate transactions. And the company’s Good Funds Payments tool is the only tool in the market that allows homebuyers to securely pay down payments and other funds from their desktop or mobile. Verified transfers are protected under Closinglock’s recently enhanced insurance policy, covering up to $2.5 million.
Last year, Closinglock launched significant enhancements, including an Early Deposit payment option and an upgraded Identity Verification feature, which generated over 400,000 identity reports. The company also expanded its payment offerings through its J.P. Morgan partnership, announced a partnership with Docusign, and improved seller bank account verification capabilities.
Closinglock’s new funding raise comes amid rapid growth for the company, with the annual revenue increasing by over 25 times over the past three years. Last year alone, Closinglock doubled its Austin-based headcount to 73 and is securing a new downtown office space. The company expects continued hiring and growth throughout 2025.
KEY QUOTES:
“Buying a home is the largest investment most families ever make — but one fraudulent email could send your life savings right into the hands of a scam artist. We’re here to make sure that doesn’t happen. This latest funding round — and the 1 million transactions already secured by Closinglock — is another vote of confidence in the work we do.”
“We are thankful Closinglock is trusted by thousands of title agents to secure their real estate transactions from the escalating threat of fraud while improving workflow efficiency. This new funding will unlock the next chapter in our journey to power and protect all real estate transactions while ensuring the secure and seamless flow of funds in every deal.”
– Andy White, CEO and co-founder of Closinglock
“We are thrilled to partner with Andy White and his exceptional team at Closinglock. Their innovative platform is transforming ID verification, eliminating wire fraud, and streamlining payments in real estate transactions. With near 25x growth over the past three years, and outstanding customer satisfaction ratings of 90%, it’s evident Closinglock is delivering exceptional value to its customers. We are excited to support the company in unlocking its full potential and driving further growth in the industry.”
– Ned Gilhuly, founding partner of Sageview Capital
