Setpoint, a leading infrastructure provider for the credit industry, announced today the successful completion of its $31 million Series B funding round. 645 Ventures led the round, with significant strategic investments from Citi and Wells Fargo, alongside Andreessen Horowitz, NextView Ventures, Floating Point, Henry Kravis, Zillow founder’s 75 & Sunny, Vesta Ventures, Fifth Wall, Eltura Ventures, and Outrunner Capital.
This funding round brings Setpoint’s total capital raised to $76 million, showcasing its role as the preferred technology partner for the world’s largest financial institutions and capital users.
Setpoint’s approach to automating debt facility management is rapidly becoming the new standard for the asset-backed industry. And the company transforms the archaic backbone of managing credit facilities into a streamlined, error-free system, addressing a critical need in the market.
Since its last funding round, Setpoint achieved several milestones, including a 6x year-over-year revenue growth, and has added major customers like GreenSky, Carvana, Fundbox, Nomura, Capchase, Kyte, Archwest, Pathway, and others.
Many of the most important transactions — whether purchasing a home, obtaining a small business loan, or refinancing a credit card — depends on a complex network of trust and credit relationships. And leading investment banks and credit funds manage trillions of dollars daily through warehouse facilities, securitization issuances and whole loan purchases. But managing these transactions often relies on outdated methods like email, Excel, and FTP folders, leading to errors and inefficiencies that impede growth and drive up the costs of lending and borrowing.
Setpoint has a goal to change this. And its Asset OS software digitizes, organizes, and verifies data, creating a real-time asset source of truth. Plus, its complementary Capital OS software automates funding flows and compliance, setting a new standard for fast, accurate, and effortless credit transactions. Built for scalability, Setpoint differentiates itself by empowering borrowers and lenders to easily navigate various complex financial arrangements, including forward flows, senior and subordinate warehouse financing, and both public and private securitizations.
The company started in the real-estate world and has since expanded into all asset-backed lending. And Setpoint has also grown its Single Family Rental (SFR) and Residential Transition Loan (RTL) customer bases, providing solutions such as diligence, AssetOS, and CapitalOS to optimize the portfolios of leading real estate lenders. Facilitating nearly 100,000 transactions annually, Setpoint is approved by major rating agencies, including Moody’s, DBRS, KBRA, and S&P. Through its affiliated capital provider, Setpoint funded over $3.5 billion in real estate transactions with proptech leaders like Homeward, OfferPad, Flyhomes, and UpEquity, all of which have been managed on the Setpoint platform.
The newly raised funds will be channeled into R&D, with a focus on expanding Setpoint’s engineering and data science teams. By utilizing machine learning and large language models (LLMs), Setpoint aims to enhance the verification of asset data and calculations, driving further innovation in the credit infrastructure space.
KEY QUOTES:
“While we’ve observed substantial innovation between borrowers and originators, originators and lenders still interact with the capital markets in relatively archaic ways. Setpoint’s software is poised to change that, driving efficiency and accuracy for major credit ecosystem stakeholders like Citi.”
– Patrick Brett of Citi Spread Products Investing Technologies (Citi SPRINT), who co-invested in Setpoint with Jeff Flynn of Citi Ventures
“We are excited to provide growth capital and to expand our relationship with Setpoint. Their deep domain expertise allows them to continue developing relevant technology, which is enhancing the efficiency and automating the workflow of credit operations.”
– C. Thomas Richardson, Head of Principal Technology Investments at Wells Fargo Strategic Capital
“Setpoint has become a cornerstone in the asset-backed ecosystem, earning the trust of the biggest financial institutions. We are proud to lead this round and support their vision in redefining the credit infrastructure landscape.”
– Jon Smith, Principal at 645 Ventures
“Setpoint is building trust in our credit system. Our vision is to make credit transactions instant, automated, and error-free. This funding round, supported by leading financial institutions and investors, propels us forward in our mission to build the technology infrastructure for capital markets.”
– Stuart Wall, CEO of Setpoint
