States Title adds $123M in new capital to promote digital closings
States Title, a fintech insurance underwriter and settlement services provider based in San Francisco, raised $123 million in a Series C capital round.
"The most pressing need in our industry right now is to remove friction and cost from mortgage closings, and to do so with solutions that can deliver fully remote, instant, digital experiences," Max Simkoff, CEO of States Title, said in a press release.
"Right now we are witnessing an unprecedented shift in the structural foundation of the real estate industry, and this new funding will allow States Title to provide enhanced support for lenders, real estate agents, and homeowners,” he added.
Greenspring Associates led the round. There were "significant investments" from Horizons Ventures, Eminence Capital and HSCM Bermuda, all of which are new backers of the company.
In addition, all of States Title's previous investors also participated in this round: Foundation Capital, Assurant, FifthWall Ventures, Lennar Ventures and SCOR Global P&C Ventures.
States Title has three underwriting units: North American Title Insurance Co., States Title Insurance Co. and States Title Insurance Co. of California. These units did approximately $300 million in premiums last year, for a market share of nearly 2%. That is a significant amount among the independent title underwriters, which have a combined market share of just under 15% according to the American Land Title Association.
North American Title was a part of Lennar until January 2019; Lennar became an investor in States Title as a result of the deal.
Including the new funding, States Title raised $229.6 million in five rounds since its founding in September 2016, according to Crunchbase.
Separately, another title and closing fintech, New York-based Spruce Holdings, completed a $29 million Series B funding round. It was led by Scale Venture Partners, with participation from Zigg Capital and Bessemer Venture Partners.
The funding will support the team's expansion, accelerate development of its proprietary technology and deepen integrations with client partners.
"In these uncertain times, innovative mortgage lenders and real estate companies that support digital transactions are providing essential services to consumers, ensuring that critical moves are still possible and refinancing loans to help cover necessary expenses," Patrick Burns, Spruce CEO, said in a press release. "Spruce is proud to be supporting our clients on the forefront of this paradigm shift, and excited to provide the best tools to compete in an ever-changing environment."