Digging Into Huge SPAC from Better.com Mortgage Lending Provider – TechCrunch

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Better.com backed by venture capital The digital mortgage lender announced this morning that it will merge with SPAC and go public in the second half of 2021. The unicorn news comes as the US IPO market is showing signs of new life after a humble April.

The Better.com deal will take place a month after. sold $ 500 million of his existing SoftBank shares at an estimate of $ 6 billion. At the time, TechCrunch described the deal as “additional proof” that non-sexual industries were able to deliver attractive ratings despite being relatively sloppy.

SoftBank’s secondary round was hardly Better’s only recent major deal; the company raised a $ 200 million round at an estimate of $ 4 billion in November 2020


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But the company’s SPAC combination will have an even higher price tag than its April round, providing Best Supported by Kleiner-Perkins with what it describes as “the cost of equity after cash deposits of approximately US $ 7.7 billion”.

SoftBank is doubling down on Better by pooling a $ 1.5 billion private investment in the deal’s public equity, or PIPE, effectively revaluing its previous investments. For Japanese telecoms and investment companies, making consistent bets with companies at ever-higher prices is essentially the gospel. So don’t read also a lot of commitment.

As with all SPAC combinations, we have a bunch of new data from a company that goes public as part of a transaction. So we get our hands dirty this morning.

Our goals are simple: we want to understand if Better is weak, strong enough, or a great business. To get there, we need to start by examining how the company works. From there, we’ll discuss his assessment against his end points. We’ll also look at his growth expectations and hold the recent IPO of Compass, a company that focuses on another part of the mortgage market, to see if we can better understand Better’s new valuation.

Ready? Deck here… Let’s have some fun.

What is Better.com?

If you’ve heard of Better but had no idea what he was doing until this morning, welcome to the club. Mortgage technologies are similar to kindergarten applications – they are applied to a very specific group of people at a particular moment. And they really care about it. But the rest of us are not really aware of its existence.

For the rest of us: Better is an online mortgage lender committed to offering lower-than-standard fees to consumers looking for a loan to help them buy a home. As a company explains on his website, he generates income by selling loans, which he helps to generate. According to his investor deck, Better also profits from the sale of insurance products.

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