Citi and Wells Fargo have joined a $31 million Series B funding round for Setpoint, an infrastructure provider that streamlines transactions for the credit industry.
Andreessen Horowitz, NextView Ventures, Floating Point, Henry Kravis, Zillow founder’s 75 & Sunny, Vesta Ventures, Fifth Wall, Eltura Ventures, and Outrunner Capital joined the round, which comes on top of a $43 million Series A at the end of 2022.
Many transactions — whether purchasing a home, obtaining a small business loan, or refinancing a credit card — depend on a complex network of trust and credit relationships. Investment banks and credit funds manage trillions of dollars daily through warehouse facilities, securitization issuances and whole loan purchases.
However, managing these transactions often relies on outdated methods like email, Excel, and FTP folders, leading to errors and inefficiencies that impede growth and drive up the costs of lending and borrowing.
Setpoint is bidding to streamline the process and reduce errors through its Asset OS software, which digitises, organises and verifies data. Meanwhile, its Capital OS software automates funding flows and compliance.
The firm began in the real-estate world and has since expanded into all asset-backed lending, signing up clients such as GreenSky, Carvana, Fundbox, Nomura, Capchase, Kyte, Archwest, and Pathway among others and facilitating nearly 100,000 transactions annually.
The new funding will be channelled into research and development, with a focus on expanding Setpoint's engineering and data science teams.
“While we’ve observed substantial innovation between borrowers and originators, originators and lenders still interact with the capital markets in relatively archaic ways. Setpoint’s software is poised to change that, driving efficiency and accuracy for major credit ecosystem stakeholders like Citi,” says Patrick Brett, Citi Spread Products Investing Technologies.