Written by Andrew Wang

Today, I’m thrilled to announce that Valon has raised $100M in a Series C round, led by WestCap with support from both new and returning investors. This significant milestone marks our transition from a budding startup to a recognized leader in the industry, paving the way for us to truly revolutionize the mortgage industry with our technology. 

This achievement wouldn’t have been possible without the relentless dedication, passion, and hard work of the entire Valon team. We are building something special here—and today’s announcement represents just the beginning.

Valon is building the first modern vertically integrated mortgage servicing platform.

Valon was born out of a simple yet critical need: accurate data from servicing systems. I became intimately familiar with this problem in my past life as a mortgage trader, where interpreting noisy data due to archaic and disparate servicing systems was both a feature and a bug of the job. It made for opportunities to invest when the market misunderstood the data but was also a clearly unnecessary inefficiency in the market. This is why accuracy here is so vital—it allows for mortgage asset owners (including the government) to properly value portfolios, ensure compliance, and guarantee fair treatment for homeowners. 

What initially seemed like a straightforward problem quickly revealed deeper complexities. On one hand, servicing is a problem about correctness. Servicers manage $10-15T of mortgages or $50B in payments a month, so getting the accounting correct and tracking each cent as it moves throughout the ecosystem is extraordinarily important. On the other hand, because the rules and the regulations change periodically, correctness is relative to both the circumstances of the mortgage and time as standards and practices change. Together, they require the system to be carefully designed to balance modularity and robustness to accurately reflect the state of the world. Hence, to truly solve this problem, we knew that a complete overhaul of the core system and infrastructure was required. And that’s exactly what we set out to do. 

Five years into our journey, I’m incredibly proud of what we’ve built. Today, Valon has over $65 billion in mortgages serviced on its platform (which represents 400% year-over-year growth!). Our technology drives stronger margins and better homeowner experience than the rest of the market. As a result, we have become a top 15 subservicer in the U.S. in just a few years.

Looking to the future

We will use this new funding to accelerate our technology development even further. We have many new products and features in the pipeline and an ever-growing client base to serve. As we continue to hit our objectives, the expectations on us grow, and we are committed to surpassing them, bringing mortgage servicing into the modern era.

What drives us every day is the knowledge that we’re making a tangible, positive impact on the lives of all of the homeowners on our platform. Mortgage servicing touches every homeownership journey in America. Homeowners consistently tell us their frustrations with existing inefficiencies and how much they appreciate the positive experience that Valon is delivering. At the same time, our clients are continually impressed by the efficiency and innovation of our platform. We’re setting a new standard for what mortgage servicing should be, and the industry is taking notice.

A market opportunity unlike any other

The past five years have been a rollercoaster, marked by challenges, breakthroughs, and a lot of hard work. We’ve only begun to tap into a massive $100B+ market, and while we’ve already made significant strides, I truly believe we’re only at the beginning of our journey. With this new round of capital, we’re better positioned than ever to seize the opportunities ahead of us. 

Thank you to everyone who has believed in us and supported us along the way. We’re excited for what’s next—and we hope you are too.

Interested in building the future of homeownership? Check out our careers page—we’re growing fast and just getting started.