Private equity firm ASG acquires AI-powered startup Homebot
Homebot, an AI-driven mortgage lending and real estate software provider, has been acquired by private equity firm ASG for an undisclosed amount.
Denver-based Homebot, a 2020 HW Tech100 Mortgage winner, has created a financial dashboard aimed at helping lenders get repeat and referral business by facilitating “meaningful engagement between lenders and their clients.”
The startup, which says it helps homeowners maximize their wealth, raised $4.5 million in 2017 in a seed round led by Black Knight Financial Services.
CEO Ernie Graham and CIO Ira McMahon cofounded the company in 2015 after their experience doing research and product development at realtor.com. Their goal was to develop a data and communication tool that all parties involved in a home transaction – homeowner, mortgage lender and real estate agent – could use.
Today, Homebot serves thousands of loan officers nationwide and achieves an average 50% monthly engagement rate across millions of homeowners with an unsubscribe rate of less than 2%.
The current Homebot leadership team – Graham, McMahon, and COO Michael Lynch – will continue to lead the business along with Charlie Pratt, who joins as CRO. According to ASG, all of Homebot’s 50-plus employees will remain with “no employee changes at this time.”
The acquiring firm, ASG, is a portfolio company of Alpine Investors that buys, builds and operates vertical SaaS (software-as-a-service) companies. The buy of Homebot marks ASG’s second in the proptech space and first expansion into residential real estate software, according to Mark Strauch, partner at Alpine Investors and cofounder of ASG.
“The U.S. homeownership market is valued at $30 trillion but is a largely ‘unmanaged’ asset class,” Strauch said in a written statement. “Homebot is changing that…and we look forward to continuing their already impressive growth.”
ASG declined to comment on Homebot’s financial metrics.
GLC Advisors served as the financial advisor for Homebot in the transaction.
In late May, ASG also acquired WorkSpace, a commercial real estate software company that works to enable business teams “to make value-based decisions.”
Earlier this week, real estate tech startup OJO Labs announced the close of a $62.5 million funding round and the acquisition of Movoto, a residential real estate search site. OJO Labs also uses AI by combining human and machine intelligence to provide personalized property recommendations and insights.
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