Closinglock, a software company in the fraud prevention space, has secured a Series B funding round of $34 million.
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Closinglock has confirmed a Series B funding round totaling $34 million, according to Inman.
In a press release on Jan. 30, the mobile-first fraud prevention software company announced that it has “safeguarded over one million transactions valued at over $500 billion and prevented $1.2 billion in fraud losses to date.”
The funding round was led by Sageview Capital with support from Headline and RWT Horizons. The funds will be used for company and product expansion.
Utilized by title companies, Closinglock’s software is designed to secure funds exchanged in real estate transactions.
Although significant amounts of money are involved in buying and facilitating a home sale, transferring funds between different banks and ensuring deposits are collected can often result in a confusing process of emails from multiple parties. This creates an opportunity for scammers to exploit the digital communication flow associated with today’s real estate transactions.
Despite the availability of secure solutions from many brokerages, banks, and title companies, there are still vulnerabilities. Fraud-related losses continue to be a significant issue in the industry, with nearly $3 billion lost in 2023, as reported in the FBI’s Internet Crime Report.
Closinglock claims to have prevented 8,250 cases of fraud.
Andy White, CEO and co-founder of Closinglock, stated, “Buying a home is the largest investment most families ever make — but one fraudulent email could send your life savings right into the hands of a scam artist. We’re here to make sure that doesn’t happen. This latest funding round — and the 1 million transactions already secured by Closinglock — is another vote of confidence in the work we do.”
Closinglock offers a comprehensive approach to identity verification, incorporating Know Your Customer (KYC) processes, physical ID analysis, contact verification, and selfie submission. Funds transfers and wire instructions are individually encrypted and processed through Closinglock’s user portal, ensuring secure transactions with payoff verification and document delivery.
The company’s “Good Funds Payments” tool is the only solution on the market that enables homebuyers to securely make down payments and other payments from their desktop or mobile device. The product includes a $2.5 million insurance policy on user funds.
The funding round aligns with the current trend in venture capital funding, which seeks to support companies with proven traction and more than just a concept. Closinglock has experienced a 25x growth over the past three years, doubling its staff to 73 and securing office space, a notable achievement for a young software company.
Contact Craig Rowe via email
