An Online Mortgage Disruptor Used This Pitch Deck to Raise $25 Million

  • The online mortgage broker Morty closed a $25 million Series B funding round in July.
  • The company is now focused on growing nationally and expanding the financing options it offers. 
  • CEO Nora Apsel walked us through the pitch deck used to raise the company’s latest funding round. 

Mortgage companies enjoyed record success last year, thanks in large part to historically low lending rates that helped fuel demand for both new home purchases and refinances. 

Morty, an


online mortgage

marketplace that connects borrowers with a variety of loan options, was no exception. 

In July, Morty announced that it had closed a $25 million funding round, which catapulted the company to a $150 million valuation. In the previous 12 months, its revenue had grown 800% year over year, according to the company, whose model appears to be primed for expansion even in today’s rising-interest-rate environment.

Founded in 2016, Morty provides a platform for homebuyers to evaluate offers from a variety of lenders before closing on a loan using the company’s automated services. The idea is to allow users to effortlessly shop for mortgages online and pick the loan that works best for them. Morty makes its money by charging lenders a fee when the loan closes. 

Mortgage companies flourished in 2020 and 2021 as lending rates plummeted during the pandemic, which encouraged more people to refinance their homes. That translated to record loan volume — in 2020, US mortgage originations totaled $4.1 trillion, with refinancings accounting for 64% of that amount, according to the Mortgage Bankers Association. Last year, the total reached $3.99 trillion, 59% of which came from refinancings. 

With mortgage rates now on the rise, refinancings are slowing dramatically. The Mortgage Bankers Association forecast that refinancing volume in 2022 would reach just $861 million, down from $2.3 trillion last year, though loan volume for new home purchases is expected to remain high.

The mortgage industry has been shedding thousands of jobs as a result, but the slowdown in refinancings is of little concern for Morty, which focuses on loans for new home purchases. Perhaps in anticipation of eventual rate increases, the pitch deck the company showed to investors during its latest funding round said purchase loans were a “less cyclical segment of the market” than refinancings.

“We started with purchase because it’s harder,” Nora Apsel, Morty’s cofounder and CEO, told Insider. “We knew if we did purchase well,” that would distinguish the company from the field, she added.

Apsel is an engineer by trade, but she recognized the challenges of the traditional mortgage process. Sensing an opportunity, she and her fellow cofounders, Adam Rothblatt and Brian Faux, arrived at a vision for a consumer marketplace that could “truly democratize” mortgages. 

“In this marketplace model, we are really about access — how to provide access to the right home-financing solution for anybody,” Apsel told Insider. “That allows us to be the one-stop shop at the top of the bubble.”

Today, homebuyers expect their borrowings, like many other transactions in their lives, to be self-driven and fully digital, Apsel said. Plus, it’s much more efficient and less costly to process mortgages that way, she said, which allows Morty to pass along savings to the homebuyer.

March Capital led Morty’s latest funding round. Other investors included Rethink Impact, Thrive Capital, Lerer Hippeau, Prudence Holdings, FJ Labs, and MetaProp.

Morty has raised $38.4 million to date, the company said. 

Apsel walked Insider through the pitch deck the company used to raise its Series B. 

Source

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