On May 04, 2021, LoanSnap announced that it had raised a $30 million Series B Investment Round.
True Ventures' (a venture capital firm) True Select Fund IV, which provides follow-on capital to other existing True portfolio companies, has led the Series B investment round. True Ventures, a venture capital firm, invests and funds early-stage startups in the field of technology.
Other participating investors are MANTIS, WorkPlay Ventures, Joe Montana's Liquid2, ThomVest ventures – an investment company group making investments on behalf of Peter J. Thomson, his family, AVANTA ventures – the venture capital arm of the CSAA Insurance Group. The Chainsmokers, who have previously won a Grammy award in the pop category, founded MANTIS. Joe Montana, the famous American footballer, started Liquid2 ventures in 2015 and is currently managing partner there.
After having accumulated $30 million, the total funds of LoanSnap now amount to $64 million and will be used to expand in newer areas of financing and refinance; the company aims to launch newer financial products. Having raised this amount, the company aspires to tap into newer loan markets throughout the United States of America with the ultimate objective of helping each American improve upon their financial well-being. These funds will go towards diversifying the company's portfolio from offering loans to newer, more different, but otherwise tailor-made credit products.
LoanSnap is a refinance, HELOC-providing (Home Equity Line of Credit) company, offering mortgage options to improve the financial health of its customers.
HELOC essentially means that people borrow against the equity value of their homes. LoanSnap provides its customers with credit solutions depending upon their complete financial situation. It is based out of San Francisco, California. It has recently announced about having raised $30 million in a Series B investment round with the help of investors like Baseline Ventures, Richard Branson's Virgin Group, and others.
LoanSnap was launched in 2018 on account of a Facebook query to its founder, Karl Jacob. One of his friends needed help with his mortgage company and approached Karl Jacob when the latter offered to start LoanSnap. Initial research done by Mr. Jacob highlighted many areas where a lacuna in the loan products was offered to the masses vis-à-vis a loan product that would suit their needs and benefit them long-term. LoanSnap was started to close these gaps. In essence, it provides personalized mortgage loans to suit its customers and improve their long-term financial health.
Today, LoanSnap provides credit solutions to its clients, keeping in mind their total financial situation and factoring in student loans, credit card payments, if any, etc. They essentially provide smart loans with a goal to have their clients stay in better financial health post taking the loan.
Recently, LoanSnap has launched Snap Guarantee, one of its first kinds in the financial world. Essentially, the company commits to closing a customer's loan within 15 days maximum, or it pays the customer $500.
LoanSnap is currently looking at a wide range of other financial products. It operates in 21 states of the United States of America. In 2020 alone, LoanSnap helped American borrowers save $35 million. Thus far, in 2021, it has saved its borrowers $16 million.
LoanSnap has come quite far but still has a long way to go. This merger ensures it keeps going.