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Spruce, a prop-tech company powering online real estate transactions, announced a $60 million Series C funding round led by Zigg Capital. Existing investors, including Bessemer Venture Partners and Scale Venture Partners, also participated. This latest investment, which will be used to build upon Spruce's leading title and residential closing technology offerings to help its clients grow, brings Spruce's total funding to $110 million, according to a press release.
Spruce has grown more than 450% annually, powering tens of thousands of transactions for leading digital mortgage lenders, SFR investment platforms, iBuyers, and each of the top five equity co-investment companies, since its inception in 2016.
The company does business in 48 U.S. states. It has contributed industry advancements including reducing transaction times by up to 25%, saving homeowners up to 20% on closing costs, and enabling transactions outside of restrictive Federal hours, according to Spruce. It is also the only title solution to offer its open API directly on its website.
“Spruce has the key qualities of a world-class technology company; exceptional product and operations teams delivering quantifiable value for its customers. Spruce's platform is central in enabling better, faster, and more affordable real estate transactions,” said Dave Eisenberg, a managing partner at Zigg Capital. “Zigg's significant investment in Spruce shows not only our confidence in the Spruce team but also in the real estate technology sector at large.”
A national survey by the company showed that current and prospective homeowners prioritize affordability, transparency, and speed when closing on a home.
“Our work with our clients fundamentally changes the way partners and consumers experience real estate transactions,” said Patrick Burns, CEO and co-founder of Spruce.
Burns added that the company plans on developing more innovations with the goal of reaching a one-click check out for real estate.
Spruce provides nationwide title insurance, closing, escrow, and recording services through proprietary technology and centralized teams. The company combines machine learning technology with a team of experts.