States Title Raises $123 Million in Round Led by Greenspring
(Bloomberg) -- States Title Inc. has raised $123 million to further its effort to bring more of the title and escrow processes online.
Greenspring Associates led the round, valuing the San Francisco-based startup at $623 million. Foundation Capital and FifthWall Ventures also participated in the round.
States Title’s clients are U.S. mortgage lenders, including bank and non-bank lenders. In 2018, it gained regulatory approval in California to enter the highly-regulated title insurance industry.
It’s a tough time for the real estate business because of the coronavirus pandemic, said States Title Chief Executive Officer Max Simkoff. He said current conditions show that the traditional real estate closing process requires too much paperwork and more of it needs to be done digitally.
Jim Lim, managing partner at Greenspring Associates, said that’s why he is optimistic about the investment. “It’s highlighted the fact that there’s probably a better way to do real estate closing,” Lim said.
Including the current round of financing, States Title has raised $230 million since it was founded in 2016. States Title acquired North American Title Group and North American Title Insurance Co. last year. States Title’s investors have included Bloomberg Beta, the venture capital arm of Bloomberg News parent Bloomberg LP.
Greenspring Associates, which is an investor in venture firms including Accel and Benchmark according to its website, also invests directly in companies. The firm has more than $10 billion in assets under management.
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