Endpoint pitch deck to raise $40m Series-B round -

This is the Endpoint pitch deck to raise a $40m series-b round in 2020 led by its parent company, First American Financial Company.

About

Endpoint is a digital Title and Escrow company, built from the ground up to deliver a radically improved closing experience for real estate agents and their buyers and sellers. Through its platform, Endpoint keeps everyone effortlessly and securely in the know throughout the transaction, while streamlining the process to make closing simple, fast and transparent.

First American Financial Company, one of the largest title companies in the US, has now invested a total of $70 million in investments from First American, since it was founded in 2018.

The home closing process brings together buyers, sellers, their real estate agents and their agent’s transaction coordinators, and the lenders who’re providing the buyer’s mortgage. It’s a highly intricate process, with multiple steps, high consequences, and additional costs, such as title insurance, which protects the homebuyer and their lender from any issues with the home’s title.

Endpoint is one of several companies that have digitized the closing process, coordinating communications between the parties and offering a single portal where all of their closing communications can take place. In the advent of the coronavirus, and states passing laws that allow for digital closing, they’ve seen a surge of interest, with New York-based Spruce raising a $29 million Series B round this May. Tech-forward real estate brokerage Compass acquired title and escrow company Modus last month.

Unlike the other startups in this space, Endpoint is backed by an actual title and escrow company, instead of venture investors. It was born out of a 2017 collaboration between First American and BCG Digital Ventures, the venture capital and incubation arm of Boston Consulting Group. It has now grown to operate in Seattle, Maricopa County, Arizona, and southern California.

While the company was launched by First American, Endpoint CEO Scott Martino said that funding wasn’t guaranteed. Martino has spent his career at First American, acting as CFO for another subsidiary, Republic Title, and was the senior vice president of IT strategy and development before becoming Endpoint’s CEO.

“We try to treat Endpoint as much of a startup as possible in the First American ecosystem,” Martino told Business Insider.

That means that Endpoint is separate from First American’s day-to-day operations, and like any other startup, had to show it hit certain financial goals and had a comprehensive vision of the future for First American to continue funding it. However, Endpoint has access to First American’s operational expertise and data, separating it from a true startup.

Martino said the choice was made to launch a separate startup so that Endpoint could make drastic changes to the closing process without having to work within First American’s processes. The goal was to combine the quick-moving, experimental nature of a startup with the institutional knowledge of 131-year old company.

Martino said the $40 million will help the company add more features to its technology and continue expansion, both geographically and by partnering with other proptech closing companies. The company is planning to expand to the Bay Area in California, and Dallas, Texas next.