Richard Branson wants people to stop making poor financial decisions.
And his investment arm is putting some capital behind him in order to do so.
Tech startup LoanSnap recently raised $8 million in Series A financing led by True Ventures with participation from Baseline Ventures, Richard Branson's Virgin Group, Core Innovation Partners, former NFL quarterback Joe Montana's Liquid 2 Ventures, OVO Fund, Transmedia Ventures, and angel investors.
"I love to invest in companies that make people's lives better and LoanSnap is exactly that," said Sir Richard Branson. "Its technology allows consumers to take control of their financial lives and will shake up the mortgage market. The strong founding team combined with its tech and a dedication to helping consumers will be a winning formula."
The company raised $12.3 million to date and this is what investors are finding to be so attractive.
According to this press release, LoanSnap data scientists found Americans took out $58 billion in "dumb loans" last year alone. A dumb loan is one a broker simply offers — and a homeowner takes — without fully reviewing what is the best financial solution.
LoanSnap leverages artificial intelligence and analyzes a customer's financial situation in seconds. LoanSnap then sorts through thousands of loan options to identify the best choice.
“It's the first loan technology that accounts for important factors, including the U.S. financial environment, to ensure that people have the best available loan now and into the future,” the company said in a statement.
"Buying or refinancing a home is one of the most important financial transactions you make in life," said Karl Jacob, CEO and founder of LoanSnap. "We are on a mission to help families enjoy peace of mind and financial stability. We achieve this by delivering a technology that can see and analyze your entire financial picture in real time then offer simple options that fit your family's needs today and into the future."
LoanSnap was founded by CEO Karl Jacob and CTO Allan Carroll, both serial entrepreneurs. Jacob was an early advisor to Facebook and has founded numerous companies. Jacob's previous startups were acquired by Microsoft, AT&T, Zazzle and Proofpoint.