A $100 million Series A round of investment, spearheaded by Accel, has been obtained for the Ohio-based home-buying business Lower. In addition to being a platform for buying, selling, and ensuring homes, Lower is a full-stack lender. There’s a good reason why $100 million for a Series A feels excessive in this case—Lower is already profitable. According to CEO Dan Snyder, the business was launched in 2014 and has been bootstrapped up to this point. Further, generating $300 million in sales without any outside funding.
In an interview with Crunchbase News, Snyder stated, “At the heart, our idea is that homeownership is the biggest wealth generator for people in America today. And we’re working to make it possible to remove obstacles and facilitate it.
Customers may use Lower to create objectives, save for a down payment, obtain a mortgage, check their credit, and purchase home insurance through an insurance exchange. According to Snyder, the corporation funds billions of dollars worth of loans every year, and its growth is increasing annually.
Because of this, he claimed, Lower was now amenable to receiving funding from outside investors. When the business started looking for investors to raise capital, it got three term sheets in a week, with Accel ultimately heading the round. John Locke, a partner of Accel, will become a member of Lower’s board of directors.
In an email, Locke stated, “Our philosophy is that a great firm can be developed anywhere throughout the globe”. We appreciate Dan’s and the Lower team’s decision to base themselves in Ohio. We also like discovering companies that have succeeded through bootstrapping. It suggests a grit that, in our opinion, is a solid base for long-term success. Lower possesses both, and the combination makes us think of businesses like Atlassian, 1Password, Qualtrics, and Galileo that we have collaborated with for a sizable Series A round.
Snyder said that Columbus-based Lower intends to continue doing what it has been doing with the new financing, only more quickly. Lower has plans to spend money on technology, employment, and increasing brand recognition.
According to Crunchbase, Lower’s latest fundraising has surpassed 2Checkout’s $60 million Series A from July 2014 as the highest Series A round received by a firm with an Ohio address. In addition, it ranks second among venture rounds raised by Ohio-based businesses this year, trailing only Forge Biologics’ $120 million Series B.