accept.inc Secures $90M Funding to Expand Digital Mortgage Platform

Revolutionizing Home Offers with Technology: Accept.inc Secures $90 Million

Numerous startups have emerged with the aim of empowering homebuyers to make all-cash offers, providing a competitive advantage, particularly in highly saturated real estate markets.

Accepti.inc, a company headquartered in Denver, Colorado, is striving to establish a novel category within real estate technology. The company recently announced it has successfully raised $90 million in combined debt and equity financing to facilitate the expansion of its digital mortgage lending platform.

Introducing the “iLender” Concept

Accept.inc defines itself as an iLender – a technology-driven lending institution – that enables individuals to submit all-cash offers on properties after securing mortgage pre-qualification.

The platform allows buyers to first obtain qualification and then focus their search on homes within their approved price range. Purchasing a home exceeding the pre-approved amount is possible, but the difference must be covered with personal funds.

Traditionally, buyers often discover potential out-of-pocket expenses only after making an offer and receiving an appraisal that falls short of the purchase price. Accept.inc aims to eliminate this uncertainty by providing buyers with a clear understanding of their approved spending limit upfront, avoiding unexpected costs.

SignalFire Leads Investment

Ilya Kirnos, Founding Partner and CTO at SignalFire, characterizes Accept.inc as “the first and only iLender” currently operating in the market.

He emphasizes that, as a lender, Accept.inc generates revenue through mortgage origination and title services, rather than charging buyers fees – a distinction from some competitors in the all-cash offer sector.

“Unlike ‘iBuyers’ or ‘alternative iBuyers,’ Accept.inc provides the upfront capital for the home purchase and profits from mortgage and title processes, ensuring no additional costs for sellers, buyers, or their real estate agents,” Kirnos explained to TechCrunch.

IBuyers, in contrast, acquire homes directly from sellers, often renovating and reselling them for a profit, while also charging transaction fees. Companies like Opendoor, Zillow, and Homelight are active in this space.

Significant Growth and Future Plans

Since its founding in 2016, Accept.inc reports having facilitated transactions totaling “hundreds of millions of dollars” for numerous buyers, agents, and sellers.

The company experienced “14x” growth in 2020, and between June 2020 and June 2021, it saw a “10x” increase in team size, transaction volume, and revenue, according to CEO and co-founder Adam Pollack.

Accept.inc intends to utilize the newly acquired capital to build upon this momentum and address growing demand.

From Initial Struggles to the iLender Model

Pollack and Nick Friedman initially connected during their college years and began developing Accept.inc with the ambition of “transforming every offer into a cash offer.” Pollack jokingly admits they encountered numerous setbacks during the initial two years.

“We essentially compiled an extensive list of reasons why the concept of assisting people with all-cash offers wouldn’t succeed,” he stated.

The team participated in the Y Combinator program in the winter of 2019, which led to the creation of the iLender model. In this approach, the company uses its own funds to purchase a home for the buyer.

Once the loan with Accept.inc is finalized, the company resells the property to the buyer “without any additional fees or charges.”

Pollack explained to TechCrunch that their experience highlighted the necessity of vertically integrating core competencies and avoiding reliance on third parties for critical aspects of the business. He also emphasized the importance of offering a genuine, full cash offer that can close within three days, rather than simply improving existing methods.

Benefits for Buyers, Sellers, and Agents

The company asserts that their model provides several advantages: buyers gain the strength of a cash offer, sellers can close transactions in as little as 72 hours, and agents receive a guaranteed commission.

“Our goal is to ensure that everyone has an equal opportunity to achieve homeownership,” Friedman said. “We aim not only to level the playing field but also to establish a new industry standard.”

Accept.inc claims that buyers utilizing their platform are 6-7 times more likely to have their offers accepted. The company also plans to expand its team to 90 employees and extend its services to new markets beyond Denver.

Chris Scoggins, a Partner at SignalFire, believes Accept.inc differentiates itself by prioritizing “winning the home, not just servicing the loan,” with a business model that is significantly more capital-efficient than its competitors.

“The team is deeply committed to creating a more equitable landscape for homebuyers who currently lose out to all-cash offers from home flippers and affluent individuals,” Scoggins added. “We foresee a substantial opportunity for Accept.inc to become a foundational element of the future of mortgage lending.”