Vatorx2
Lendsnap
Location: 2880 Helen Street, Oakland, California, United States United States
Founded in: 2014
Stage: Revenue generating
Number of employees: 6-15
Short URL: vator.co/lendsnap
Followers (13)
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Lendsnap

Lendsnap empowers consumers in personal finance with unprecedented access to their own financial data.
Startup/business
Oakland, California, United States United States
http://lendsnap.com

Lendsnap is redefining how borrowers apply for any loan, by offering the first Financial Passport they can safely share with lenders. By automating the mountain of paperwork borrowers go through to access financial services, we disrupt status quo content- and SEO-driven lead generation to become their gateway to applying for any loan.

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Company description

We have two mortgage lenders under contract to participate in the Limited Release (paid, live Beta) in April, representing 120 brokers. During the Beta, we ramp up to serving this cohort of brokers, to process 350 applications per month, representing $34k in monthly income by the end of 2016 ($408k annualized). 

Today, financial lead generation is driven exclusively by undifferentiated content marketing and SEO ad spend. Lendsnap disrupts this market paradigm by removing the mountain of paperwork that blocks consumer and small business access to credit. We empower borrowers with the first Financial Passport they can safely share with lenders. Borrowers with a Financial Passport comprised of links to their financial and employment accounts can skip navigating the internet, downloading files, renaming, organizing, and sending insecure emails when shopping for the best loan. The Lendsnap platform gives borrowers unprecedented access to their own financial data so they can relax while lenders apply to them.

 

 





Team
  • Orion Parrott
    Orion Parrott | Founder
    Hi, my name’s Orion. I have been a real estate investor for 20 years. I helped design and program our nation's missile defense system and now have turned my lifehacker and high performance software skills to humanizing personal finance.
  • Nahrin Reihaneh
    Nahrin Reihaneh | Founder
  • Alberto Miranda
    Alberto Miranda | Team member
    I have solid working experience in both backend and frontend, working with PHP, MySQL and MongoDB on backend, and with AngularJS, Bootstrap, RequireJS, SASS, LESS, grunt and several other tools. I love working on startups, creating disruptive tech.
  • Mike Romano
    Mike Romano | Team member
    VP of Business Development at Lendsnap, making the mortgage origination process easier and safer for borrowers.
Business model

We know exactly how we will make money. We charge $95 for each mortgage application which compares very favorably to the $500-$700 that lenders are used to paying loan processors for each loan. On this basis we have signed two contracts already and have strong interest from several other top 10 and a top 20 national lenders. We are using a usage metering payments model instead of a SaaS payment model because that is how mortgage lenders are used to paying for documents and services. We innovate where we need to and we try to fit into their existing processes as much as possible without causing unnecessary disruption.

Later once we have built our base of lenders we can go directly to consumers to match borrowers with lenders. At that point we are disintermediation brokers which is worth $1000-$5000 per close mortgage loan. We can dominate in mortgage lead generation by being the easiest way for people to apply for a loan with our Financial Passport that puts all their data in one place.

We have gotten our users with direct sales. Mike Romano our VP of BD has 13 years of mortgage experience in Northern California and by reaching out through his extensive network we have been able to earned several commitments. Once we have the paid MVP launched, we will build out the self-serve side of the business so that lenders can sign up for themselves online at which point we will use a lower touch SEO/SEM-based marketing campaign. In mortgage there are important trade shows as well, run by the Mortgage Bankers Association and others that we will participate in.

 

Competitive advantage

We are the only company gathering original PDF documents on behalf of mortgage borrowers. These documents are universally accepted in the secondary markets. Anyone relying on transactional data such as Yodlee (our competitors all do) is limited to selling their loans only to secondary market buyers who accept that data.

Other companies have compromised on the type of data they turn in. They underestimate the massive inertia in mortgage that  makes it take another 10 years before mortgage companies will universally accept transactional data. Until then, we have a significant competitive advantage with the links we have built to financial institutions including employer portals. Very few companies are reaching out to serve all lenders. Most of them think that being a lender is the way to go but then they have to rely on content marketing to get clients. We are going to dominate lead generation by being the easiest way for people to apply for a loan. No one has automated the borrowers work in the process of loan shopping yet.

Today, financial lead generation is driven exclusively by undifferentiated content marketing and SEO ad spend. Lendsnap disrupts this market paradigm by removing the mountain of paperwork that blocks consumer and small business access to credit. We empower borrowers with the first Financial Passport they can safely share with lenders. Borrowers with a Financial Passport comprised of links to their financial and employment accounts can skip navigating the internet, downloading files, renaming, organizing, and sending insecure emails when shopping for the best loan. The Lendsnap platform gives borrowers unprecedented access to their own financial data so they can relax while lenders apply to them.