The Business of Reggora and Its Funding Round
Lenders and appraisers benefit from payment processing, algorithmic appraisal ordering, automatic rule-based reviews, appraisal delivery, and status updates. Reggora also integrates with major point of sale and loan origination software platforms such as Ellie Mae Encompass, Black Knight, and SimpleNexus.
The company recently completed a $30 million Series B funding round led by returning investor Spark Capital, a venture capital firm that has provided early-stage funding to numerous successful startups, including Twitter, Wayfair, Plaid, and Slack. In addition to Spark, returning investors contributing to the round include Boston Seed and 1984. New investors include Shine Capital and Greenpoint Partners.
The financing brings the total capital the company has raised to more than $45 million. Reggora will use the latest round of funding to continue hiring top talent in all business departments and to support technology and engineering investments.
“Growing at the rapid rate that we have, scaling operations quickly to meet demand has been challenging, especially when supporting large-enterprise customers,” said Brian Zitin, Reggora’s co-founder and CEO, to Startup Savant. “We need to make sure we hire A+ talent so that we build scalable systems.”
Refinance Boom Creates Demand for Streamlined Appraisals
The funding round closed during a significant refinance boom brought on by the coronavirus pandemic, which put tremendous pressure on the operations systems and processes of mortgage lenders.
“It’s the perfect time in the history of the industry to bring on new technology in the valuation space,” Zitin said. “If we do it right, then the entire residential real estate asset class — not just limited to mortgage origination — can become one that is more democratized from an information standpoint and efficient when it comes to valuation. The effects could range as big as making the economy safer through better underwriting at the capital markets level all the way to consumers looking to renovate their homes and clearly understand the value.”
Co-founders Zitin and Will Denslow, Reggora’s chief technology officer, met as randomly assigned college roommates in 2013. They shared an entrepreneurial spirit that propelled them to launch several companies, including a successful real estate brokerage. As that business started to take off, Zitin and Denslow realized how clunky the mortgage process is, especially when it came to appraisals. The partners saw an opportunity to drive change in a crucial part of the mortgage process.
“We immersed ourselves in the industry, shadowed appraisers, interviewed lenders and started building,” Zitin said.
About the Author
Margaret is an award-winning journalist who spent nearly 25 years in the newspaper industry. She has covered a variety of business topics, including residential and commercial real estate, technology, telecommunications, and cannabis.