SoftBank Group Corp. invests $ 500 million in mortgage lender Better as Japanese investment giant tries to handle a surge in startup valuations.
Familiar with the matter, parent company Better Holdco Inc. is valued at approximately $ 6 billion, according to those familiar with the matter. SoftBank is buying shares from the company’s existing investors, jumping from the $ 4 billion it raised in November. Better is expected to go public later this year, some of the people said.
Founded in New York in 2014, Better caters to consumers through its website and banks it works with such as Ally Financial Inc.Like other mortgage lenders, Better saw a surge of buying and refinancing activity over the past year as interest rates hit historic lows and eventuality Loans of $ 25 billion in 2020 and $ 14 billion in the first quarter of 2021 alone, according to one respondent.
SoftBank has been in talks with Better about the potential investments since late last year, some of the respondents said, partly due to the startup’s rapid growth. SoftBank’s founder and CEO Masayoshi Son has advised employees to look for pre-IPO fast-growing companies where the investing giant can capitalize quickly given his expectation that reviewsthat have benefited from factors such as a buoyant IPO market will continue to rise in the short to medium term, according to those familiar with the fund.