HSCM Bermuda commits $150m to insutech committed to reinventing home buying

HSCM Bermuda has provided $150 million in debt financing for States Title, an insurtech that promises to revolutionise the home buying experience.

HSCM Bermuda was an existing investor in States Title, which issued $123 million series C notes in May 2020. The capital will be used to finance its aggressive growth plans, with States Title committed to “fundamentally transforming the home closing experience.”

It will also refinance debt held by Lennar Corporation, which helped fund the 2019 acquisition of North American Title Company (NATC) and North American Title Insurance Company (NATIC).

States Title was founded in 2016 and uses machine intelligence and patented technology to simplify and increase efficiency in real estate closings. It promises to reduce costs and improve transaction experiences for lenders, real estate professionals, title agents and homeowners, with home closing being reduced from more than 40 days to as little as six.

Max Simkoff, chief executive officer at States Title, outlined a vision of home buying where the process was no longer stressful or overwhelming, but was as convenient as other digital transactions.

“At States Title, we’re not just fixing that system, we’re wiping it clean and building a better one from scratch,” Simkoff said. “HSCM Bermuda has been a great partner, having participated in our last equity round prior to this debt financing. They see immense value in how we are overhauling the system and, together, we now have greater capacity to tackle this enormous market, with significant tailwind behind what we’re doing.”

Vikas Singhal, a partner at HSCM Bermuda, said it had first been involved with States Title when it was a start-up in an old San Francisco warehouse in 2016. “It is so exciting to see them grow into such a structurally important part of the real estate industry and we are excited to back them again on this next phase of growth,” he said.