On Tuesday, mortgage servicing startup Brace announced that it raised $15.7 million in its Series B funding round led by Canvas Ventures. So far, Brace has raised over $30 million in total funding since its founding in 2017.
This new round comes less than a year after the LA-based company raised its $10 million Series A round, which is indicative of how fast the company is growing.
Brace has built an online platform that helps mortgage servicers protect themselves from financial losses incurred from delinquent borrowers. In order to to do this, it’s digitized the process for loss mitigation.
Mortgage demand jumped significantly last year, partially fueled by access to historically low interest rates. But demand for loss mitigation requests from delinquent borrowers increased as well because of the financial hardship caused in 2020.
Because of this, more mortgage servicers had to rely on Brace. The company says it experienced “tremendous” growth in 2020, adding some of the largest mortgage servicers as clients.
“An enormous amount of value is locked inside legacy core systems, and in this past year the COVID-19 crisis has been a catalyst for speeding up innovation in servicing,” Brace CEO Eric Rachmel said in a statement.
The company plans to use this new funding to add new features to its products and expand the number of services it offers. It also plans to use the money to grow its team, and the company currently has a handful of open positions for roles in engineering, operations and product.
