HSCM backs States Title with $150m debt financing
San Francisco-based States Title, a digital title start-up, has raised $150 million in debt financing from re/insurer HSCM Bermuda, following a $123 million Series C round in May 2020, to transform real estate closings.
The funds will help States Title accelerate market expansion, invest in go-to-market growth, and refinance of debt to Lennar Corporation, who helped fund the 2019 acquisition of North American Title Company (NATC) and North American Title Insurance Company (NATIC).
It plans to use the new debt facility to optimise the cash available for launching new technology solutions for the future of real estate.
Founded in 2016, States Title uses machine intelligence and patented technology solutions to make real estate closings simpler and efficient while reducing costs.
“Today’s consumers expect processes to be simple, efficient and digital — and home buying, which is already stressful and overwhelming, should set the standard for easing customers’ journeys rather than lagging behind other digital solutions,” said Max Simkoff, CEO of States Title. “At States Title, we’re not just fixing that system, we’re wiping it clean and building a better one from scratch.
Simkoff added: “HSCM Bermuda has been a great partner, having participated in our last equity round prior to this debt financing. They see immense value in how we are overhauling the system and, together, we now have greater capacity to tackle this enormous market, with significant tailwind behind what we’re doing.”
Vikas Singhal, a partner at HSCM Bermuda, commented: “We are thrilled to be growing our relationship with States Title as they become an increasingly integral part of the mortgage ecosystem. We first met them in 2016 when they were still a start-up in an old San Francisco warehouse. It is so exciting to see them grow into such a structurally important part of the real estate industry and we are excited to back them again on this next phase of growth.”
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