An increasing number of startups are taking on the titans of the title insurance industry, with one of those digital firms recently scoring some major funding.
Digital title startup Spruce raised $60 million in a Series C funding round that was led by Zigg Capital. The new funding will bring Spruce’s total raise to $110 million; it previously raised $29 million in a Series B round in 2020, and about $21 million in several smaller rounds prior to that. Other investors in the Series C include Bessemer Venture Partners and Scale Venture Partners.
The New York-based company, which was founded in 2016 by Patrick Burns and Andrew Weisgall, is seeking to reduce time and costs associated with closing on a home, by offering title insurance, closing, escrow, and recording services. It’s teamed up with lenders such as Better.com and LoanSnap.
Spruce plans to use the new funding to hire more staff, expand the company’s offerings and provide more money for its research and development initiatives.
It’s one of several startups taking on the “Big Four” of the title insurance industry: Old Republic, First American, Fidelity National and Stewart. Another venture, Doma, announced earlier this year that it would go public via a merger with a special-purpose acquisition company, which put its valuation at $3 billion.
Zigg Capital, co-founded by entrepreneur Dave Eisenberg, is a venture capital firm focused on investing in real estate technology.
The firm recently raised $225 million for its second fund. Zigg has invested in Juniper Square, an investment management software company; VTS, a lease management platform; and Cherre, a real estate data startup.