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Maxwell raised $16.3 million in a Series B funding round led by Fin VC and TTV Capital. Rotor Capital, The Mortgage Collaborative Emerging Technology Fund, and existing investors including Anthemis Group, Route 66 Ventures, and Sovereign's Capital also participated in the round. Maxwell has now raised more than $20 million in eight months after a $5 million Series A funding round in June 2020.
According to a press release, Maxwell plans to use the additional capital to accelerate product development, market penetration, and product and engineering recruitment. The company hopes to meet the market demand for technology solutions that enable community lenders, extending its reach to a number of small and midsize mortgage lenders.
Loan fulfillment accounts for 50% of mortgage costs, according to the press release. Since the 2008 mortgage crisis, most new digital entrants focus on the application process. Maxwell currently helps more than 250 community lenders nationwide weed through the cost and various obstacles throughout the entire mortgage transaction.
“Community lenders are uniquely positioned for growth by delivering superior and tailored lending products to their markets. These lenders excel in their local knowledge, local relationships, and local relevance—strengths that will serve them well as Gen Xers and millennials seek homeownership in high numbers,” said John Paasonen, Maxwell co-founder and CEO.
“Maxwell has developed a breakthrough SaaS platform aimed at a fast-growing segment of the mortgage market,” said Peter Ackerson, general partner at Fin VC. “From our investments in SoFi and Figure, we’ve seen first hand the impact modern industry-leading technology capabilities and innovative business models can have on complex markets that are eager for change.”
Maxwell facilitated over $100 billion in loan volume to-date through its platform. In 2020, the company grew its team to over 200 employees and surpassed $6 billion in monthly loan volume on its platform.
Notably, this funding represents the first strategic investment from The Mortgage Collaborative’s new venture capital fund, TMC Emerging Technology Fund LP, which aims to capture opportunities driven by rapid technological change in the mortgage sector.