Home Stock SoftBank invests $ 500 million in Better Mortgage startup

SoftBank invests $ 500 million in Better Mortgage startup

SoftBank Group Corp. is investing $ 500 million in mortgage lender Better as the Japanese investment giant seeks to fuel a rising wave of startup valuation.

The investment in valuation of parent company Better Holdco Inc. about $ 6 billion, according to people familiar with the matter. SoftBank

are buying shares from the company’s existing investors with a jump from the $ 4 billion they raised in November. Some say Better is expected to go public. later this year.

Founded in New York in 2014, Better provides home loans to consumers through its website and banks with which it works with, such as Ally Financial Inc. Like other mortgage lenders, Better spurred a wave of home buying and refinancing over the past year in the form of interest rates hitting historic lows, eventually extending $ 25 billion in loans by 2020 and $ 14 billion in just the first quarter of 2021, according to one of them.

SoftBank has been discussing a potential investment with Better since the end of last year, some said, in part due to the startup’s rapid growth. SoftBank founder and CEO Masayoshi Son has told employees to hunt for fast-growing companies ahead of IPOs, where the investment giant can deploy capital quickly in the expectation that the valuation of according to those familiar with the fund. Those familiar with the fund add, there is an expectation that the valuations of such companies, which benefit from factors including a vibrant IPO market, will continue to rise in the near to medium term. .

An expanded version of this report appears on WSJ.com.

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