FinTech Home Buying Platform Lower Raises Massive $100 Million Round
They say that good things come to those who wait. Apparently, that’s true when it comes to startups as well. Today, Lower.com announced that it had raised an astounding $100 million Series A led by Accel.
The round follows several years of the FinTech bootstrapping its operations, during which time they’ve managed to see $300 million in revenue and reach profitability. Lower also notes that the nine-figure deal amounts to the largest Series A raised by an Ohio company (the startup is based in Columbus). As a result of the investment, Accel partner John Locke will be joining Lower’s board of directors. Meanwhile, the company says the funds will be used to expand its product line-up and accelerate its already impressive growth.
With an aim on Millennial and Gen-Z homebuyers, Lower.com is a house financing platform. Boasting a “one-stop shop” experience, the site and app allow customers to find mortgage products along with home insurance quotes and more. According to the company, they’ve earned more than 16,000 reviews averaging five stars.
The announcement comes soon after Lower introduced its new HomeFund deposit account. Offering an above-average 0.75% APY, the account allows future homeowners to earn interest on their money while saving for their purchase. Additionally, HomeFund accounts offer dollar-for-dollar match in HomeCash rewards up to the $1,000 saved.
Sharing some insight into the company’s history and vision, Lower co-founder and CEO Dan Snyder said, “My co-founders and I started this company because we saw a need in this industry to make the process easier for consumers. We’re all actively involved in growing the company and knew the next stage of our journey would be accelerated by bringing in a top firm like Accel.” As for what the raise means for the company going forward, Snyder remarked, “More investment means faster growth and more impact. Homeownership is the greatest wealth creator for Americans and Accel’s history of supporting bootstrap companies and their investment means we can help more people achieve it faster.”
Ultimately, Lower’s Series A does throw off the curve a bit as early round investments are typically associated with younger startups — and are often much smaller as a result. That said, as TechCrunch notes, Accel actually has a history of participating in large Series A rounds, such as those for 1Password, the now-acquired Galileo, and more. Turning back to Lower themselves, it’s clear that the company was on a strong path even before this injection of funds. Thus, we can expect even bigger things in its future as the FinTech continues to expand.