Setpoint, a fintech streamlining the hidden, cumbersome processes behind trillions in daily financial transactions, has closed $31 million in Series B funding. 645 Ventures led the round, with significant strategic investments from Citi and Wells Fargo, alongside Andreessen Horowitz (which recently invested in Hebbia and ElevenLabs), NextView Ventures, Floating Point, Henry Kravis, Zillow founder’s 75 & Sunny, Vesta Ventures, Fifth Wall, Eltura Ventures, and Outrunner Capital.
This funding round brings Setpoint’s total capital raised to $76 million, demonstrating its role as the preferred technology partner for the world’s largest financial institutions and users of capital.
The newly raised funds will be channeled into research and development, with a focus on expanding Setpoint’s engineering and data science teams. By leveraging machine learning and large language models (LLMs), the company aims to enhance the verification of asset data and calculations, driving further innovation in the credit infrastructure space.
Investors’ views
“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,” said Patrick Brett of Citi Spread Products Investing Technologies (Citi SPRINT), who co-invested in Setpoint with Jeff Flynn of Citi Ventures.
C. Thomas Richardson, Head of Principal Technology Investments at Wells Fargo Strategic Capital, added, “We are excited to provide growth capital and to expand our relationship with Setpoint. Their deep domain expertise allows them to continue developing relevant technology, which is enhancing the efficiency and automating the workflow of credit operations.”
645 Ventures, leading this round, played a critical role in bringing together a diverse group of investors. “Setpoint has become a cornerstone in the asset-backed ecosystem, earning the trust of the biggest financial institutions,” said Jon Smith, Principal at 645 Ventures. “We are proud to lead this round and support their vision in redefining the credit infrastructure landscape.”
What role does it play?
Most important transactions, such as purchasing a home, obtaining a small business loan, or refinancing a credit card, depend on a complex network of trust and credit relationships. Leading investment banks and credit funds manage trillions of dollars daily through warehouse facilities, securitisation 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 on a mission to change this.
What does the company do?
Founded in 2021 by Stuart Wall, Ben Rubenstein, and Michael Lam, Setpoint transforms capital markets’ workflows from outdated manual systems to efficient, automated solutions, significantly reducing costs and enhancing speed for both borrowers and lenders. The company aims to be the “Stripe for credit,” and makes loan transactions instant, automated and error-free.
While its Asset OS software digitises, organises, and verifies data, creating a real-time asset source of truth, the Capital OS sofrqare automates funding flows and compliance, setting a new standard for fast, accurate, and effortless credit transactions.
Facilitating nearly 100,000 transactions annually, the company is approved by major rating agencies, including Moody’s, DBRS, KBRA, and S&P. Through its affiliated capital provider, Setpoint has funded over $3.5 billion in real estate transactions with proptech leaders like Homeward, OfferPad, Flyhomes, and UpEquity, all of which have been managed on the Setpoint platform.
“Setpoint is building trust in our credit system,” said Stuart Wall, CEO of Setpoint. “Our vision is to make credit transactions instant, automated, and error-free. This funding round, supported by leading financial institutions and investors, propels us forward in our mission to build the technology infrastructure for capital markets.”
