quo.com Raises $7.2M Seed Round - SignalFire Leads Investment

Mortgage Access Challenges in the US

Approximately three million Americans face mortgage denial annually. A significant number are unaware of the initial steps or the qualifying criteria. The current mortgage process is often perceived as overly intricate and confusing, effectively preventing many individuals from achieving homeownership.

This situation represents a missed opportunity for the mortgage industry, which primarily focuses on applicants who are already financially prepared. This approach overlooks a substantial segment of the population who aspire to own homes but require guidance.

Emergence of Fintech Solutions

In recent years, several fintech companies, including NerdWallet, Lower.com, Divvy, and Landis, have emerged. These startups aim to simplify aspects of the home-buying process, such as saving for a down payment.

However, there remains considerable potential for new entrants, particularly those capable of providing comprehensive support to consumers navigating the complexities of securing a mortgage.

Introducing Quo: A New Approach

Quo is a recently established startup presenting a novel strategy for homeownership. Its user-friendly application assesses a user’s current financial standing.

The app then outlines the specific mortgage qualification requirements that must be met to obtain a home loan.

Seed Funding and Acquisition

Quo has successfully secured $7.2 million in seed funding, spearheaded by SignalFire. Additional participation came from Justin Mateen, Soma Capital, Global Founders Capital, and existing investors.

Concurrently, Quo has acquired Uncapped Mortgage, a licensed mortgage brokerage based in Nashville, rebranding it as QuoHome.

QuoHome will offer mortgage brokering services to Quo users when they are prepared to purchase a home.

Growth and Impact of QuoHome

The majority of the newly acquired funds will be allocated to accelerating the expansion of the QuoHome coaching application.

Quo reports that its users have collectively accumulated $200 million in home-buying capacity and are actively working towards purchasing $1.2 billion worth of properties, demonstrating a Compound Monthly Growth Rate (CMGR) exceeding 100%.

How the Quo Product Works

The Quo platform functions by securely connecting to a user’s credit, savings, and income data to create a detailed financial profile.

This profile is then evaluated against established mortgage underwriting guidelines to determine current affordability and identify the necessary improvements in credit, debt, and savings to achieve desired homeownership goals.

Optimized Strategies are then provided, suggesting the most effective paths to faster homeownership, such as prioritizing debt repayment versus saving for a down payment.

Founding and Mission

Quo was founded in 2018 by Tucker Haas and Neel Yerneni while they were students at Stanford University.

Their core mission is to promote more equitable wealth building, beginning with homeownership.

Haas shared that his personal experiences with financial hardship in his upbringing motivated the creation of Quo.

“My upbringing in a low-income household exposed me to the flaws within the financial system,” Haas explained. “Quo represents our commitment to making wealth accumulation more accessible.”

“Since the beta launch in June, our members have managed over $21 million in home savings through Quo, targeting nearly half a billion dollars in homes. This $7.2 million funding round, led by SignalFire, validates the need for a more transparent and inclusive approach to this industry.”

Industry Perspective

Josh Constine of Signalfire noted, “The current economic climate is driving a new wave of fintech innovation focused on savings and homeownership, as the middle class seeks financial stability.”

Economic uncertainty is a key factor in this trend.