Citi and Wells Fargo are participating in a $31 million Series B funding round for Setpoint, an infrastructure provider that enhances transaction processes within the credit industry.
Other notable investors in this round include Andreessen Horowitz, NextView Ventures, Floating Point, Henry Kravis, 75 & Sunny (founded by Zillow’s co-founder), Vesta Ventures, Fifth Wall, Eltura Ventures, and Outrunner Capital. This funding follows a $43 million Series A round that took place at the end of 2022.
Many financial transactions—such as home purchases, small business loans, or credit card refinancing—rely on a complex web of trust and credit relationships. Investment banks and credit funds handle trillions of dollars daily through mechanisms like warehouse facilities, securitization issuances, and whole loan purchases. However, the management of these transactions often still utilizes outdated tools such as email, Excel, and FTP folders, leading to errors and inefficiencies that hinder growth and escalate lending and borrowing costs.
Setpoint aims to simplify these processes and minimize errors with its Asset OS software, which digitizes, organizes, and verifies data. Additionally, its Capital OS software automates funding flows and compliance requirements.
Initially focused on the real estate sector, Setpoint has since broadened its services to encompass all asset-backed lending, enrolling clients such as GreenSky, Carvana, Fundbox, Nomura, Capchase, Kyte, Archwest, and Pathway, and facilitating nearly 100,000 transactions each year.
The newly acquired funding will be directed towards research and development, specifically aimed at expanding Setpoint’s engineering and data science teams.
“While we’ve observed substantial innovation between borrowers and originators, originators and lenders still interact with capital markets in relatively archaic ways. Setpoint’s software is poised to change that, driving efficiency and accuracy for major credit ecosystem stakeholders like Citi,” emphasizes Patrick Brett from Citi Spread Products Investing Technologies.