San Francisco-based fintech startup LoanSnap announced the close of a $10 million funding round on Friday. The round was led by MANTIS, a tech investment firm founded by musical duo The Chainsmokers.
The automated loan technology company is the first of many startups that MANTIS plans to invest in. Alex Pall and Drew Taggart, the musicians who comprise The Chainsmokers, told Bloomberg News that they plan on investing an additional $40 million into several other startups as well.
“Our mission is to invest in companies that can change people’s lives for the better,” Pall said in a statement. “In LoanSnap we see a company that is already helping Americans pay off debt and improve their personal financial situation.”
LoanSnap uses an AI platform to sort through various refinancing offers and mortgage options to provide clients with recommendations on where and how they can save their money. According to the company, the service enables clients to close on loans in 15 days or less, after clients answer a few questions about their financial history.
“We look at deals and meet leadership teams on a regular basis and the LoanSnap team led by Karl [Jacob], really stood out to us as innovative and forward thinking,” Taggart said in a statement.
When asked about why the “Closer” singers invested in the startup, Taggart told Bloomberg News that he anticipates interest rates to reach an “unprecedented” low in coming months due to the economic fallout of the coronavirus. Karl Jacob, CEO and co-founder of LoanSnap, agrees.
“In a time of dire financial uncertainty across the country, buying or refinancing a home will be the most critical financial transaction you make,” Jacob said in a statement. “Our mission is to help as many families as possible achieve peace of mind and financial stability especially during this time.”
The latest round is the second investment made by The Chainsmokers-led VC firm, as it previously backed Ember Technologies, a temperature-controlled drinkware line.
LoanSnap has raised a total of $22.7 in venture capital to date, according to Crunchbase. The fintech company has previously received investments from other celebrity-owned VC firms including Richard Branson’s Virgin Group and Joe Montana’s Liquid 2 Ventures.
