Digital mortgage lender Better announced last Tuesday that it will go public via a SPAC merger with Aurora Acquisition Corp. The deal will give Better a valuation of around $7.7b – not bad at all!
Better was started in 2016 by a former Morgan Stanley (MS) analyst named Garg. After a deal to purchase a house for his family fell through due to a last-minute cash buyer, Garg realized there has to be a better way. Now, Better’s platform has completely digitized the traditionally cumbersome process of obtaining a mortgage, cutting the mortgage industry’s average closing time of 42 days to just 21. The rest is history.
Better will be receiving strong support from Japanese investment firm SoftBank. Softbank will be arranging a $1.5 billion private investment in public equity as part of Better’s public offering.