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Better.com, an online lending startup, has closed a Series D round that values the company at roughly $4 billion, according to a source familiar with the matter.
The $200 million round was led by L Catterton—a private equity firm based in Greenwich, Connecticut—according to Bloomberg, which first reported the news. Ally Financial
Founded in 2014 by Vishal Garg, Better markets itself as a quicker alternative to conventional mortgage lenders. It can offer pre-approval on a loan within minutes, though full approval can take days or longer. Better last raised funds roughly a year ago at a $600 million valuation.
The company has benefited from a wave of refinancings caused by rock-bottom interest rates and Covid-19. Investors are betting that the company can keep pace once the market inevitably slows down.
As it grows, Better is working to take a bigger bite out of the mortgage origination space. Rocket Mortgage, its much larger rival, went public in August, a deal that boosted the fortune of its founder, Dan Gilbert, by $33 billion. Forbes currently estimates Gilbert’s net worth at $45 billion.
I've been a reporter at Forbes since 2016. Before that, I spent a year on the road—driving for Uber in Cleveland, volcano climbing in Guatemala, cattle farming in
…I've been a reporter at Forbes since 2016. Before that, I spent a year on the road—driving for Uber in Cleveland, volcano climbing in Guatemala, cattle farming in Uruguay, and lots of stuff in between. I graduated from Tufts University with a dual degree in international relations and Arabic. Feel free to reach out at nkirsch@forbes.com with any story ideas or tips, or follow me on Twitter @Noah_Kirsch.
I'm a staff reporter at Forbes covering tech companies. I previously reported for The Real Deal, where I covered WeWork, real estate tech startups and commercial real
…I'm a staff reporter at Forbes covering tech companies. I previously reported for The Real Deal, where I covered WeWork, real estate tech startups and commercial real estate. As a freelancer, I've also written for The New York Times, Associated Press and other outlets. I'm a graduate of Columbia Journalism School, where I was a Toni Stabile Investigative Fellow. Before arriving in the U.S., I was a police reporter in Australia. Follow me on Twitter at @davidjeans2 and email me at djeans@forbes.com