Spruce Raises $ 60 Million to Build a One-Click Real Estate Cashier

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Spruce announced Wednesday that it has completed a $ 60 million fundraiser. Zigg Capital led the round alongside other existing investors Bessemer Venture Partners and Scale Venture Partners.

The latest capital brought the total investment of the technology company, which provides property rights insurance, closure, escrow and registration services for lending and real estate transactions, up to $ 110 million. He closed his previous Series B round at $ 29 million in May 2020.

Spruce will use Series C injection to support R&D, recruit more team members, and expand its digital offerings, but details on the product roadmap have yet to be released, according to a company spokesman.

“We are more than ever excited to work with our innovative partners to create a one-click real estate checkout, especially with the growing focus on consumer needs and expectations,” CEO and Co-Founder Patrick Burns said in a press release. …

According to a December 2020 poll by Spruce, about 80% of homeowners said technology could make it easier to buy a home, 45% said closing time was the most frustrating part of the process, and 48.5% said real estate transactions were outdated.

The New York-based company, founded in 2016, aims to reduce transaction times by up to 25% and cut closing costs by 20%. Although mortgage closing times have been steadily shrinking over the past four months, they sat at 51 days in April, well above the April 2020 average of 42 days, according to a report by ICE Mortgage Technology.

Spruce, which claims to have grown 450% annually since its inception, allows transactions to be completed outside of federal bank business hours and hosts its API directly on Spruce’s website.

Latest round of company financing enters the queue with the confidence of investors and interest in the proptech sector hitting a record high this year, according to Keefe, Bruyette & Woods reportage from March.

“The Spruce platform plays a central role in enabling better, faster and more affordable real estate transactions,” said Dave Eisenberg, managing partner at Zigg Capital. “Zigg’s significant investment in Spruce demonstrates not only our confidence in the Spruce team, but also in real life. the real estate technology sector in general. “



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