SAN FRANCISCO, May 04, 2021 (GLOBE NEWSWIRE) -- LoanSnap, the company that helps consumers own their financial future and creator of the world's first smart loan, announced today it has raised a $30 million Series B investment round led by True Ventures True Select Fund IV which provides follow-on capital to existing True portfolio companies that exhibit high growth potential and large-scale opportunity. Also participating are prior investors, including Baseline Ventures, Richard Branson's Virgin Group, AVANTA Ventures, ThomVest Ventures, Joe Montana's Liquid 2, WorkPlay Ventures and MANTIS, the investment group founded by the Grammy Award-winning pop duo, The Chainsmokers. New investors include LinkedIn co-founder and serial entrepreneur Reid Hoffman, among others.
LoanSnap has also hired Olivia Man as its new CFO. With more than 14 years of experience in financial services, Olivia brings a wide range of expertise across corporate strategy, financial planning, and capital markets. Previously, she led financial planning and analysis and served as a director of capital markets, personal finance at SoFi.
According to Ellie Mae, the average closing time for a loan was 55 days. Americans have suffered through long waits to secure loans. LoanSnap recently launched the Snap Guarantee, the first of its kind in the industry. With this guarantee, the company commits to closing a customer's loan in 15 days, or the customer receives $500. LoanSnap solved this by honing its technology through 2020 to close 40 days faster than most mortgage companies.
The funds will be used to further expand into new loan types and across the United States to bring the company closer to helping every American improve their finances.
"The last year was a roller coaster for borrowers, but we have been there for them every step of the way," said Karl Jacob, CEO and co-founder of LoanSnap. "We are grateful our investors share our vision of improving Americans' finances and want to see us expand."
Since rolling out this one-of-a-kind technology, LoanSnap has saved borrowers $35 million in 2020 alone. The company uses artificial intelligence to analyze a consumer's finances, shows them where they are losing money and then sorts through thousands of options to make a loan recommendation in seconds. The company also uses AI and proprietary technology to automate much of the loan process instead of other lenders who do it manually. This provides a service much easier on the customer that instills peace of mind with lower payments and can get the cash they need quickly.
"LoanSnap has continued to thrive during an economic climate where other businesses have not been as fortunate," said Phil Black, co-founder of True Ventures. "Their focus on the needs of their customers and delivering an unparalleled industry experience continues to give us the confidence to lead this round. The world needs a company dedicated to helping customers improve their finances rather than taking advantage of them."
LoanSnap customers greatly appreciate the company's focus on improving their finances.
"My LoanSnap broker analyzed all of my finances and my credit and even though some institutions wanted to pass on me, they said they could do this," said one LoanSnap customer, a U.S. veteran who is saving nearly $1,500 a month. "Working with LoanSnap allowed me to save money for retirement and apply those savings to my son's student loans."
LoanSnap has raised a total of $64 million in venture capital from True Ventures, Baseline Ventures, Richard Branson's Virgin Group, AVANTA Ventures, ThomVest Ventures, Hall of Fame NFL quarterback Joe Montana's Liquid 2 Ventures, serial entrepreneur Mark Pincus's WorkPlay Ventures, Accelerator Ventures, Morado Venture Partners and MANTIS, the investment group founded by the Grammy Award-winning pop duo, The Chainsmokers and serial entrepreneur Reid Hoffman.
For more information or to get started with LoanSnap today, visit www.goloansnap.com.
About LoanSnap, Inc.
LoanSnap's mission is to improve the finances of every American. The company invented the world's first smart loan technology that uses artificial intelligence to analyze a person's finances and shows simple ways to benefit from a smarter loan now and into the future. By working with LoanSnap, users can save money, time and feel confident that their smart loan will safeguard their financial future.
About True Ventures
Founded in 2005, True Ventures is a Silicon Valley-based venture capital firm that invests in early-stage technology startups. With more than $2.8 billion under management, True provides seed and Series A financing to entrepreneurs in today's fastest-growing markets. To date, the firm has helped more than 300 companies launch and scale their businesses, creating over 25,000 jobs worldwide. To learn more, visit www.trueventures.com.