Setpoint, a startup that has built software to help other companies close loan transactions faster, has raised $43 million in a Series A round led by Andreessen Horowitz (a16z).
The raise comes just six months after Austin, Texas-based Setpoint closed a $5.5 million seed round and $150 million in securitization.
Serial entrepreneurs Ben Rubenstein, Stuart Wall and Michael Lam founded Setpoint in 2021 with the goal of “building next-gen infrastructure for all asset-backed lending.” Asset-based lending is any loan that’s secured by an asset. If the loan isn’t repaid, the asset is collateral.
In other words, Setpoint aims to be the “Stripe for credit,” and says it has built an operating system for originators that “makes loan transactions instant, automated and error-free.” It does things like verify and store documents, automate interest rate calculations and digitize assets such as homes.
“Where Stripe is next-gen payment infrastructure, Setpoint’s goal is to be the funding operating system that companies like SoFi and Opendoor will be using to run their businesses,” Rubenstein told TechCrunch. The end goal, he added, is to make credit more widely available and the underlying assets and loans more liquid.
Opendoor is already a Setpoint customer, along with Offerpad, Orchard, Backflip, Wander and “many other proptechs,” according to CEO and co-founder Wall.
As evidenced by its customer base, Setpoint’s initial focus was on powering real estate transactions, but it is now expanding into asset-backed lending as a whole. The company also serves as a lender itself, providing capital to proptech/alternative transaction companies. By also providing these companies with software that is designed “to help them scale and grow,” Setpoint is attempting to reduce its risk on the capital side.