Factom raises $8M in extended Series A for blockchain mortgage solution
During the initial phase of the funding round, Factom closed $5.3 million with participation from Draper Associates, Stewart Title, Overstock, Fenbushi Capital and Plug and Play. With the new round, Peeli Ventures, Harvest Equity and a number of undisclosed Austin-area investors raised an additional $2.7 million.
This announcement follows the release of Factom’s newest mortgage blockchain solution Factom Harmony, launched in March. With the incoming money, the company is focusing heavily on expanding and marketing that product.
“Factom’s Harmony product creates a transformative approach for the compliance in the U.S. mortgage industry,” said Harry Qin, managing partner of Peeli Ventures.
Through blockchain technology, which uses distributed ledgers to secure document history and authenticity with cryptography, Factom hopes to simplify the recordkeeping aspect of mortgage applications.
Using this technology, the thousands of documents, modifications and data transactions associated with mortgages can be indexed in a way that gives lenders, recipients and auditors access and proof-of-authenticity without exposing private data.
Janson Nadeau, executive vice president of Factom, said that the “combination of blockchain and digital signature technology” that Factom Harmony is built on creates a solution that benefits recordkeeping without the need for expensive, proprietary industry e-governance solutions. The solution, he added, is now available for all documents in the mortgage lifecycle via Factom’s service.
Factom is no stranger to real estate related products and is one of the earliest blockchain outfits to attempt to link up with a state government. However, Factom’s dealings with the Government of Honduras, with which the company contracted to build a land registry tool, stalled in December 2015 and have not moved forward.
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