Real estate tech company Snapdocs today revealed that it has raised $25 million in series B funding to further develop its products and platform. Coinciding with the news, the San Francisco-based company announced the opening of a new office in Denver, Colorado. Snapdocs said the new office would serve as a center for a “wide variety” of roles, with an emphasis on engineering and operations.
F-Prime Capital led this latest raise, with participation from Sequoia Capital. (Among previous backers are Y Combinator and SV Angel.) The series B brings Snapdocs’ total raised to around $45 million, following a $15 million funding round in November 2017, and it comes on the eve of twin milestones: more than 50,000 customers and over 750,000 mortgage closings annually, amounting to $150 billion in transactions.
“This is a huge [achievement] for the Snapdocs team and toward delivering on our promise of a seamless digital real estate closing,” said CEO Aaron King, who founded Snapdocs in 2013. “We do this for [our customers], and this capital enables us to continue to scale our world-class team so we can build the technology you need to thrive in a digital age.”
In a nutshell, Snapdoc’s toolset aims to cut down on manual mortgage processes by digitizing wherever possible. It automates scheduling for signings and manages payments to the tune of over $4 million per month, all while centralizing key information like order history, signer, and notary documents in a single portal. Signing agents can create white-labeled dashboards where clients can send new orders, add documents, and track progress. And those same agents get analytics on the backend, including a list of clients that generate the highest profit.
Snapdocs boasts a database of 60,000 notaries that can be searched using an automated search algorithm. Notaries manage and upload their documents to a secure portal, from which they’re able to add signing appointments to third-party calendars. They’re also afforded control over which companies can contact them for new signing opportunities.
Snapdocs’s document processing tech takes PDFs and converts them into files with electronic signature fields, which enables signing from a PC, tablet, or smartphone. That’s a big deal in the real estate industry, where loan packages often contain pages with electronic signature locations in different locations. Snapdocs’ AI algorithms identify which pages can be electronically signed and which require ink, after which they detect where electronic signature tags are needed and apply metadata that specifies the tag type (e.g. signature field, checkbox, etc.).
Snapdocs says its automated system can prep loan documents containing hundreds of pages in 11 minutes.
“Residential mortgage is a $2 trillion industry and one of the largest sectors yet to be digitized,” said F-Prime Capital tech fund managing partner David Jegen, who plans to join Snapdocs’ board of directors. “The entire closing process is cumbersome and in need of a better workflow for collaboration, coordination, and transparency. Snapdocs has built the leading vertical SaaS solution to this problem and is well-positioned to become the industry’s platform for digital mortgage closings.”