Tomo raises $40 million

Mortgage startup Tomo has raised $40 million in Series A funding at a $640 million valuation. SVB Capital led the fundraising, which included participation from Ribbit Capital, NFX and Zigg Capital, Telesoft Partners, and Parker89.

Founded in 2020 by former Zillow execs, Tomo is on a mission to simplify the mortgage process. The startup, which is live in Colorado, Connecticut, Florida, Michigan, Ohio, Texas, and Washington, promises competitive rates, on-time closing, pre-approvals, and price matching.

“In less than a year since they launched their online platform, the team at Tomo has proven they have the drive and the experience to transform the mortgage industry. And that’s why SVB Capital led this round, after investing in the company’s Seed round. We believe they are building a company that will reshape how people buy homes.” – Tilli Bannett, managing partner at SVB Capital.

“We are maniacally focused on improving the purchase mortgage experience and have never been distracted by the temporary profits of the refi business. As homes continue to sell at a rapid clip, this focus has allowed us to sidestep the disorder that many lenders now find themselves in and to make huge leaps forward in serving homebuyers and partnering with real estate agents.” – Greg Schwartz, Tomo’s CEO and co-founder.