Richard Branson, Joe Montana back AI startup for mortgages
Startup LoanSnap, a company funded in part by Virgin Group founder Richard Branson, has launched artificial intelligence that matches consumers with mortgages based on a complex analysis of their financial situation.
"Its technology allows consumers to take control of their financial lives and will shake up the mortgage market," said Branson in a press release about the company's official launch.
In addition to Virgin Group, former professional football player Joe Montana's Liquid 2 Ventures, True Ventures, Baseline Ventures, Core Innovation Partners and OVO Fund Transmedia were among investors that participated in raising $8 million in Series A financing in the company's launch. The company has raised more than $12 million in total.
Virgin Group's investment follows close on the heels of Branson's sale of its Virgin Money unit, which has made and withdrawn from investments in the U.S. mortgage market in the past.
The analysis the company technology aims to provide goes beyond identifying the mortgage that offers the consumer the lowest rate and includes information related to potential savings from paying off other types of debt.
The digital mortgage technology gathers initial information from consumers through mobile applications that scan driver's licenses and verify identities through the last four digits of Social Security numbers, then ask for answers to a series of questions. The automation then uses the responses to present loan options.
Karl Jacob, the chief executive officer and founder of LoanSnap, was an early advisor to Facebook and has founded several startups that companies like Microsoft and AT&T later acquired.