Total amount raised
$1.5 Billion
Latest funding date
08/01/2023
Location
Better.com has successfully raised funds over nine rounds, with the latest being a Post-IPO Debt round. The company is backed by 29 investors, including notable names like SoftBank.
Better.com, listed under the ticker NASDAQ:BETR, leverages technology to transform the homeownership journey. Keep reading to explore the intricacies of Better.com's fundraising journey and the investors backing this innovative platform.
What Is Better.com?
Better.com is a homeownership journey platform that leverages technology to transform the way people buy and own homes. The company operates in various industries, including Consumer Lending, FinTech, Lending, Mortgage, PropTech, and Real Estate.
Founded in New York, New York, Better.com employs between 1001 and 5000 people. The company is publicly traded on NASDAQ under the ticker symbol BETR and has raised significant funding over multiple rounds.
How Much Funding Has Better.com Raised?
- Seed Round
- Amount Raised: Not publicly disclosed
- Date: February 2014
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the company's operations and initial development.
- Series A
- Amount Raised: USD 30,000,000
- Date: June 2016
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team and enhance the platform's technology.
- Series B
- Amount Raised: USD 15,000,000
- Date: February 2017
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and increase market reach.
- Series C
- Amount Raised: USD 160,000,000
- Date: February 2019
- Lead Investors: Activant Capital
- Valuation at Round: USD 600,000,000
- Motivation Behind the Round: To scale operations and technology.
- Series D
- Amount Raised: USD 200,000,000
- Date: November 2020
- Lead Investors: L Catterton
- Valuation at Round: USD 4,000,000,000
- Motivation Behind the Round: To capitalize on the booming online mortgage market driven by the pandemic and low mortgage rates.
- Secondary Market
- Amount Raised: USD 500,000,000
- Date: April 2021
- Lead Investors: SoftBank Vision Fund
- Valuation at Round: USD 6,000,000,000
- Motivation Behind the Round: To support continued growth and potential of the online mortgage industry.
- Post-IPO Equity
- Amount Raised: USD 37,000,000
- Date: August 2023
- Lead Investors: Novator
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further expand market presence and technological capabilities.
- Post-IPO Debt
- Amount Raised: USD 528,000,000
- Date: August 2023
- Lead Investors: SoftBank
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To strengthen financial stability and support long-term growth.
- Post-IPO Debt
- Amount Raised: USD 155,000,000
- Date: April 2025
- Lead Investors: SoftBank
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance financial flexibility and support strategic initiatives.
Total Amount Raised: USD 1,625,000,000. Current Valuation: USD 6,000,000,000.
Key Investors
- SoftBank
- Details: SoftBank is a Japanese investment conglomerate known for its significant investments in various technology and fintech companies. It has been a major investor in Better.com, participating in multiple funding rounds.
- Investment Focus Areas: Technology, fintech, disruptive industries
- Notable Investments: Uber, WeWork, Alibaba
- Novator
- Details: Novator is a prominent investment firm that has invested in Better.com. The firm is known for its strategic investments in technology and innovative companies.
- Investment Focus Areas: Technology, innovation, growth companies
- Notable Investments: Better.com
- SoftBank Vision Fund
- Details: SoftBank Vision Fund is a subsidiary of SoftBank, focusing on large-scale investments in technology companies. It has also invested in Better.com.
- Investment Focus Areas: Technology, artificial intelligence, robotics
- Notable Investments: Better.com
- L Catterton
- Details: L Catterton is a global consumer-focused private equity firm. It has invested in Better.com, contributing to its growth and expansion.
- Investment Focus Areas: Consumer brands, retail, healthcare
- Notable Investments: Better.com
- Activant Capital
- Details: Activant Capital is a growth equity firm that invests in technology companies. It has been a key investor in Better.com, supporting its technological advancements.
- Investment Focus Areas: Technology, growth companies, innovation
- Notable Investments: Better.com
What's Next for Better.com?
Better.com stands at the cusp of significant growth opportunities, driven by substantial investments and a booming online mortgage market. The company's valuation has surged to $6 billion, fueled by a $500 million investment from SoftBank. This influx of capital positions Better.com to expand its loan processing capabilities and increase its market presence.
Future fundraising opportunities appear promising, with potential plans for an IPO. The engagement of major financial institutions like Morgan Stanley and Bank of America Corp. underscores the company's readiness for public markets. However, Better.com must navigate the complexities of an IPO and maintain its growth momentum post-pandemic.
Challenges lie ahead, including fierce competition from other fintech and proptech companies and the need to manage rapid expansion effectively. Yet, with a strong investor base and a clear growth trajectory, Better.com is well-positioned to capitalize on the evolving digital mortgage landscape.
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