Brace, a digital mortgage servicing platform, now has $10 million to help grow its business after closing a new round of funding.
The company announced Thursday that it raised $10 million in its Series A funding round. The funding round was led by Point72 Ventures, a venture capital firm that’s an offshoot of Steve Cohen’s Point72.
The investment round, which included participation from existing investors like Crosslink Capital, brings the company’s total funding to $15 million in less than two years.
Brace’s platform brings default servicing management into the digital environment, automating workflows and processes for mortgage service providers.
Tripp Shiner, partner at Point72 Ventures, said that the firm invested in Brace because it thinks the company and its platform could “revolutionize” mortgage servicing.
“We believe Brace has the potential to revolutionize mortgage servicing, which is an industry that is primed for change,” Shiner said. “We’re impressed by the progress Brace has already made in tackling complex industry problems and developing solutions that benefit everyone involved in the process.”
According to Brace, it will use the new funding to expand its platform with “additional SaaS technology impacting other segments within the lifecycle of mortgage servicing,” along with increasing its client base.
“Point72 Ventures adds significant value to our team with its deep bench of resources and expertise that will support us in furthering business development efforts, go-to-market strategy, and product expansion,” Brace CEO Eric Rachmel said.
“Right now, servicers are forced to use decades-old technology to manage millions of US mortgages—a problem that gets much worse for servicers who manage borrowers that are non-performing,” Rachmel added. “We take a different approach that is focused on modernizing the servicing process with software modules and services for mortgage servicing infrastructure, instead of the one-size-fits-all servicing system that often misses important nuances.”