accessibilityaccreditedactiveactivityaimalarmalign-bottomalign-center-horizontalalign-center-verticalalign-leftalign-rightalign-topanchorangelannoyedapplearchivearrow-downarrow-leftarrow-rightarrow-uparticleat-signawardbalanceballoonbandaidbarcodebellbicyclebinocularsblindboatbook-closedbookbookmarkbookmarkedbooksbottlebriefcasebrushbugbullhornbuscabinetcakecalendarcameracarcashcertificatechalkchart-barschart-linechart-piechatcheckmarkchevron-downchevron-leftchevron-rightchevron-upcircle-arrow-downcircle-arrow-leftcircle-arrow-rightcircle-arrow-upcircle-backwardcircle-checkmarkcircle-chevron-downcircle-chevron-leftcircle-chevron-rightcircle-chevron-upcircle-crosscircle-ejectcircle-exclamationcircle-facebookcircle-firstcircle-forwardcircle-googlepluscircle-gustcircle-lastcircle-linkedincircle-minuscircle-nextcircle-pausecircle-play-thincircle-playcircle-pluscircle-previouscircle-questioncircle-stopcircle-twittercircleclipboard-checkclipboardclockcloud-databasecloud-downloadcloud-fogcloud-gearcloud-lightningcloud-lockcloud-raincloud-snowcloud-synccloud-uploadcloudcocktail-glasscodecombinecomment-fillcommentcommentscompassconfusedconnectconstruction-coneconstructioncontactscoolcopycredit-cardcropcrosscrowncubedatabasedeletedesigndesktopdiamonddicedinnerdisconnectdocumentdownloaddrawerdreamdropletdumbbellearthediteggellipsisenter-downenter-leftenter-rightenter-upenterenvelopeevilexcludeexit-downexit-leftexit-rightexit-upexitexpandeye-droppereyefacebookfactoryfeatherfile-audiofile-codefile-imagefile-videofile-zipfilefilm-playfindfirefirst-aidflagflip-horizontalflip-verticalfloppy-diskfolderfootprintframefunnelgamepadgasgeargiftglassglassesgoogleplusgraduationgrin-evilgringroupgungusthamburgerhammerhappy-grinhappyheadsetheart-fillhearthistoryhomeiconsinboxintersectipadiphonekeykeyboardkeyholeknifelablamplaptopleafleave-downleave-leftleave-rightleave-uplibrarylifebuoylighterlightning-boltlinklinkedinlistlocationlocklotusmadmagicmagnetmalletmanmapmedalmeet-downmeet-leftmeet-rightmeet-upmic-mutemicminusmoonmousemovemusic-notemusicmustachemutenavigationneutralnewsoptionsoutletpaint-rollerpaintbrushpairpaper-planepaperclippaperspastepatchpawpenpencilphonephotopicturepinpine-treeplaneplayplaylistplug-cordpluspodiumpowerpresentationprinterprofilepulsepuzzlequestionquote-closequote-openradiorank1rank2rank3receptionrecycleredorefreshregisterreply-allreplyroad-signrocketrulersadscissorsscreensearchshareshieldshipshirtshockedshrinkshufflesignalsitemapskullsmartphonesmilespeed-fastspeed-mediumspeed-slowspell-checksquaresubtractsunsyncsyringetabtablettagtagstargetteacupterminalthumbs-downthumbs-uptickettilestimertoilet-papertonguetoolstrailertraintransmissiontrashtreetrophytrucktvtwitterumbrellaundounlinkunlockuploaduserusersvolume-highvolume-lowvolume-mediumvolumewarningwheelchairwifiwinkwomanwonderingwrenchzoom-inzoom-out

Lendsnap is offering securities under both Regulation D and Regulation CF through SI Securities, LLC ("SI Securities"). SI Securities is an affiliate of SeedInvest Technology, LLC, a registered broker-dealer, and member FINRA/SIPC. SI Securities will receive cash compensation equal to % of the value of the securities sold and equity compensation equal to % of the number of securities sold. Investments made under both Regulation D and Regulation CF involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Furthermore, the contents of the Highlights, Term Sheet sections have been prepared by SI Securities and shall be deemed broker-dealer communications subject to FINRA Rule 2210 (the “Excluded Sections”). With the exception of the Excluded Sections noted above, this profile contains offering materials prepared solely by Lendsnap without the assistance of SI Securities, and not subject to FINRA Rule 2210 (the “Issuer Profile”). The Issuer Profile may contain forward-looking statements and information relating to, among other things, the company, its business plan and strategy, and its industry. Investors should review the risks and disclosures. The contents below are meant to be a summary of the information found in the company’s Form C. Before making an investment decision, investors should review the company’s Form C for a complete description of its business and offering information, a copy of which may be found both here and below.

About Lendsnap

An expensive problem

Lenders will write $1.5T of home mortgages in 2017, and will have to evaluate every single borrower's ability to repay. This is expected to cost the industry $15B in human labor. We talked to these humans, and learned that they spend 1/3 of their time just asking other humans for documents and data that are almost universally available online. While the market is still making the transition to transactional data, Lendsnap is the only company bridging the present with the future by delivering original electronic documents and datasets. That means portfolios of our lender customers stay completely liquid in the secondary market. No one else can offer that today.

How we solve it

Lendsnap solves the financial data access problem for lenders and consumers. Our secure web app links to consumer accounts to gather pay stubs, W2-s, tax returns, and bank statements. We started in mortgage, which TechCrunch calls “the holy grail of lending”. We power mortgage lending with all the documents and data needed to qualify borrowers. Through our web app and public API, we support traditional and online origination workflows to help lenders transition to electronic mortgage origination on their terms. We meet the market where they are today.

How the future looks

We are positioned to address a $4B market that is evolving rapidly right now. Mortgage underwriting rules are set in large part by FNMA and FMAC, the government sponsored entities (GSE’s) that keep mortgage markets liquid. The pivotal sea of change happening right now is the transition from original electronic documents to transactional data sets. While the market is still figuring out how to access and use this new data, Lendsnap bridges the present with the future by delivering original electronic documents and datasets. Our competitors deliver data only but not the original electronic documents.

Customer Testimonials

Lendsnap has improved our signed application conversion almost overnight because of its speed and ease of use. Once clients send us the documents and we can deliver a full pre-approval, they are more likely to stay with us and use us to satisfy their mortgage needs.

-Jared, Access Mortgage Partners

Lendsnap has been a great tool.  As a small broker shop, it was challenging to find a resource to obtain complete borrower documentation securely. Lendsnap provides a secure, convenient, and most importantly, a straightforward, simple interface for consumers to provide sensitive information quickly.  With my branding incorporated, Lendsnap becomes an extension of my company. Thanks for everything.

-Jeff, Homebuyers Mortgage

Product & Service

Lendsnap instantly gathers the original borrower documents and data for lenders by linking to consumer financial accounts. We increase loan origination team productivity by 25%+ and save applicants several hours on each application as well.

Our intuitive and easy-to-use workflow makes it easy and safe for borrowers to submit and for loan officers to receive the necessary documents for lenders to make a credit decision. With quicker access to original source documents, lenders are able to provide faster service with less risk to their portfolios and the secondary market. 

Our lender clients pay us to increase their throughput, enabling them to increase top line revenue by closing more loans. We charge $15/applicant/month on new business. Existing business is priced at $100/loan officer/month.

Launched in July 2016. Now processing 150+ applications per month at ten companies, customer testimonials. API documentation is available, integration to Ellie Mae Encompass complete.

As the only company delivering the right documents and data to originate non-agency loans such as VA, FHA, and subprime, we are able to work with all types of lenders. This market segment consistently represents 5-10% of total loan originations each year and is projected to grow in the near term due to rising rates. Furthermore, we are uniquely suited to serve mortgage brokers (12% market share) who have to remain flexible to the credit needs of their diverse borrowers. We are the only post-launch company that delivers actual electronic statements straight from source institutions, such as Bank of America, TurboTax, Chase, and hundreds more. 


Tutorials: 

  1. Lendsnap Overview Tour -Our world class borrower experience designed by a Series C funded UX Director
  2. How to link your accounts using Lendsnap- Account linking to gather original documents -where the magic happens!
  3. What do the different colors mean? -How our UI guides the customer to next steps
  4. How to upload a document on Lendsnap -Consumers can upload documents as well as link financial and employment accounts.
  5. Document options - view/replace/delete/move -How consumers manage documents in Lendsnap

Media Mentions

Team Story

Mike heard about Orion building Lendsnap to transform mortgage in October 2015 through a Berkeley Haas newsletter. As a loan officer manager with 14 years of experience, Mike could see that Lendsnap is building the future of lending and wanted to help drive this change. After sharing our visions for how significant the service could be, and lining up on go-to-market strategy, we got to work in  November 2015. Orion knew Mike was the perfect partner because of his experience building origination teams and delivering mortgage software solutions at big four consulting firms. As a duo, they are unstoppable!

Founders and Officers

Orion Parrott

Founder and CEO

Orion earned a Master of Science in Electrical Engineering that included machine learning, pattern recognition and classification, detection of signals in noise, and other applied math and physics courses. He led electronics manufacturing of radar amplifiers worth $25M annually. He started a biofuel cooperative in Boston in 2006 to convert diesel vehicles to run on recycled vegetable oil. Orion has programmed in C++ and Fortran, and helped design, develop, and test our nation's distributed missile defense system.

https://www.linkedin.com/in/lendsnap/

Mike Romano

Founder and Vice President of Business Development

Mike has originated thousands of loans and led origination teams at Wachovia, Wells Fargo, and other companies around California through good markets and bad. Mike has an excellent sense of dealing with enterprise customers and knows how to craft a deal that appeals to them, with defined implementation timeline and strategic scoping of projects. He is a master of SaaS and enterprise pricing with novel ideas that align with lender interests.

https://www.linkedin.com/in/mikerromano/

Orion Parrott

Founder and CEO

Orion earned a Master of Science in Electrical Engineering that included machine learning, pattern recognition and classification, detection of signals in noise, and other applied math and physics courses. He led electronics manufacturing of radar amplifiers worth $25M annually. He started a biofuel cooperative in Boston in 2006 to convert diesel vehicles to run on recycled vegetable oil. Orion has programmed in C++ and Fortran, and helped design, develop, and test our nation's distributed missile defense system.

https://www.linkedin.com/in/lendsnap/

Mike Romano

Founder and Vice President of Business Development

Mike has originated thousands of loans and led origination teams at Wachovia, Wells Fargo, and other companies around California through good markets and bad. Mike has an excellent sense of dealing with enterprise customers and knows how to craft a deal that appeals to them, with defined implementation timeline and strategic scoping of projects. He is a master of SaaS and enterprise pricing with novel ideas that align with lender interests.

https://www.linkedin.com/in/mikerromano/

Key Team Members

Santiago Marin

QA and Test

Alain Kramar

Software Engineer

Abby Walla

Customer Support

Pablo Feldman

Software Engineer

Mizue Horiuchi

Product Manager

Notable Advisors & Investors

Y Combinator

Investor, not your average fixed point combinator

Orion Parrott
NICHOLAS CLAYTON
Alchemist
Cerium Technology

Investor, Our process focuses on exceptional companies with great people and products

Brad Flora
Jude Gomila

Investor, CEO and Founder @ Golden

Doug Duncan

Advisor, SVP and Chief Economist at Fannie Mae (FNMA)

Larry Fried

Advisor, Vice President, Investor Business Development at Ellie Mae

Eldon Klaassen

Advisor, Founder and Managing Director, Cerium Technology

Ash Rust

Advisor, Founder and CEO of SendHub, EIR at Trinity Ventures

Ray Sidney

Advisor, 2nd Google Engineer

Albert Chu

Advisor, CEO at Moff USA

Q&A with the Founder

  • Has the company made any loans to any members?
    Technically speaking – Mike and I did this, this year. Mike and I began taking a small wage earlier this year; our tax advisor advised us to turn that into a loan from the company to us – which we are paying back month on month in 2017 – and that is because we did not file quarterly withholdings for ourselves; so, it was more tax advantageous to make that a loan. The total amount is about $40k in total.
  • Can you give us an idea of you business model and your business strategy?
    We want to change the way that mortgages and lending is done for as many consumers as possible. That pushes our model to Saas for mortgage lenders – enterprise sales model so far and getting feedback from select customers that are the right early adopters. We released our draft API in July, so we have several significant clients that are reviewing and considering using us. We entered the market with small to mid sized mortgage lenders; and we’re finding significant demand from larger players – who have more of an appetite to use the api. That’s our strategy. Originally we had a concept of D2C – and someday we might come back to that – but for now we are able to achieve a lot of growth with switching to a B2B marketplace model. We’re more concentrated now on the product that we have been building and rolling that out. What makes us different is the type of data that we collect on the lenders from the borrowers – which is getting the original statements directly from the institutions. Our competition is grabbing transactional data and then generating a verification of deposit based on that data – that data is also accepted now on large government sponsored secondary markets like Fannie Mae. Where we are unique and because we are getting the original sourced documents – there is a segment of the market which equals 5-10% of the total origination market every year on agency (Subprime, FHA and VA) which have to have original statements. That’s a market that we have identified that we can uniquely target.
  • Could you provide a breakdown of the product?
    We deliver it as an API or as a standalone web or mobile application. Our app runs in a mobile browser for borrowers. Lenders can trigger the borrower activates – basically inviting a borrower from their own loan origination activities. We can also do custom integrations as a way to raise early revenue – even though its not recurring revenue.
  • Could you explain how you plan to scale following the raise?
    We still have a long way to go with Mike leveraging his extensive network that he has built over time (being in mortgage for 14 years) – building origination teams. Theres no one there who has open api’s or even a web app that can be signed up for – or even a web app that can be used by every lender. We’re raising money to add some engineering and add sales to increase our velocity for developing these new products. We want to add at least 2 engineers and some sales personnel. We want to be able to reach out to more clients. We want to be able to reach the largest lenders.
  • Could you give us an idea of what your expectations are for exit opportunities?
    There have been several rollups lately in mortgage or lending software. Acquisition is the most likely vs an IPO – We look at loan origination software or possibly a lead gen software provider. Mostly lead gen and mortgage software fit well – they both tie into achieving Fannie Mae’s mission.
  • The Q&A with the Founder is based on due diligence activities conducted by SI Securities, LLC. The verbal and/or written responses transcribed above may have been modified to address grammatical, typographical, or factual errors, or by special request of the company to protect confidential information.

    Investor Perks

    Mortgage lenders investing $50K or more receive additional usage credits worth 20% of their investment.

    It is advised that you consult a tax professional to fully understand any potential tax implications of receiving investor perks before making an investment.

    Frequently Asked Questions

    About Side by Side Offerings
    What is Side by Side?

    A Side by Side offering refers to a deal that is raising capital under two offering types. This Side by Side offering is raising under Regulation CF and Rule 506(c) of Regulation D.


    What is a Form C?

    The Form C is a document the company must file with the Securities and Exchange Commission (“SEC”) which includes basic information about the company and its offering and is a condition to making a Reg CF offering available to investors. It is important to note that the SEC does not review the Form C, and therefore is not recommending and/or approving any of the securities being offered.

    Before making any investment decision, it is highly recommended that prospective investors review the Form C filed with the SEC (included in the company's profile) before making any investment decision.


    What is Rule 506(c) under Regulation D?

    Rule 506(c) under Regulation D is a type of offering with no limits on how much a company may raise. The company may generally solicit their offering, but the company must verify each investor’s status as an accredited investor prior to closing and accepting funds. To learn more about Rule 506(c) under Regulation D and other offering types check out our blog and academy.


    What is Reg CF?

    Title III of the JOBS Act outlines Reg CF, a type of offering allowing private companies to raise up to $1 million from all Americans. Prior capital raising options limited private companies to raising money only from accredited investors, historically the wealthiest ~2% of Americans. Like a Kickstarter campaign, Reg CF allows companies to raise funds online from their early adopters and the crowd. However, instead of providing investors a reward such as a t-shirt or a card, investors receive shares, typically equity, in the startups they back. To learn more about Reg CF and other offering types check out our blog and academy.


    Making an Investment in Lendsnap
    How does investing work?

    When you complete your investment on SeedInvest, your money will be transferred to an escrow account where an independent escrow agent will watch over your investment until it is accepted by Lendsnap. Once Lendsnap accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to Lendsnap in exchange for your shares. At that point, you will be a proud owner in Lendsnap.


    What will I need to complete my investment?

    To make an investment, you will need the following information readily available:

    1. Personal information such as your current address and phone number
    2. Employment and employer information
    3. Net worth and income information
    4. Social Security Number or government-issued identification
    5. ABA bank routing number and checking account number (typically found on a personal check or bank statement)

    If you are investing under Rule 506(c) of Regulation D, your status as an Accredited Investor will also need to be verified and you will be asked to provide documentation supporting your income, net worth, revenue, or net assets or a letter from a qualified advisor such as a Registered Investment Advisor, Registered Broker Dealer, Lawyer, or CPA.


    How much can I invest?

    An investor is limited in the amount that he or she may invest in a Reg CF offering during any 12-month period:

    • If either the annual income or the net worth of the investor is less than $100,000, the investor is limited to the greater of $2,000 or 5% of the lesser of his or her annual income or net worth.
    • If the annual income and net worth of the investor are both greater than $100,000, the investor is limited to 10% of the lesser of his or her annual income or net worth, to a maximum of $100,000.

    Separately, Lendsnap has set a minimum investment amount of US $0.

    Accredited investors investing $20,000 or over do not have investment limits.


    After My Investment
    What is my ongoing relationship with the Issuer?

    You are a partial owner of the company, you do own shares after all! But more importantly, companies which have raised money via Regulation CF must file information with the SEC and post it on their websites on an annual basis. Receiving regular company updates is important to keep shareholders educated and informed about the progress of the company and their investment. This annual report includes information similar to a company’s initial Reg CF filing and key information that a company will want to share with its investors to foster a dynamic and healthy relationship.

    In certain circumstances a company may terminate its ongoing reporting requirement if:

    1. The company becomes a fully-reporting registrant with the SEC
    2. The company has filed at least one annual report, but has no more than 300 shareholders of record
    3. The company has filed at least three annual reports, and has no more than $10 million in assets
    4. The company or another party purchases or repurchases all the securities sold in reliance on Section 4(a)(6)
    5. The company ceases to do business

    However, regardless of whether a company has terminated its ongoing reporting requirement per SEC rules, SeedInvest works with all companies on its platform to ensure that investors are provided quarterly updates. These quarterly reports will include information such as: (i) quarterly net sales, (ii) quarterly change in cash and cash on hand, (iii) material updates on the business, (iv) fundraising updates (any plans for next round, current round status, etc.), and (v) any notable press and news.


    How can I sell my shares in the future?

    Currently there is no market or liquidity for these shares. Right now Lendsnap does not plan to list these shares on a national exchange or another secondary market. At some point Lendsnap may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when Lendsnap either lists their shares on an exchange, is acquired, or goes bankrupt.


    How do I keep track of this investment?

    You can return to SeedInvest at any time to view your portfolio of investments and obtain a summary statement. If invested under Regulation CF you may also receive periodic updates from the company about their business, in addition to monthly account statements.


    Other General Questions
    What is this page about?

    This is Lendsnap's fundraising profile page, where you can find information that may be helpful for you to make an investment decision in their company. The information on this page includes the company overview, team bios, and the risks and disclosures related to this investment opportunity. If the company runs a side by side offering that includes an offering under Regulation CF, you may also find a copy of the Lendsnap's Form C. The Form C includes important details about Lendsnap's fundraise that you should review before investing.


    How can I (or the company) cancel my investment under Regulation CF?

    For offerings made under Regulation CF, you may cancel your investment at any time up to 48 hours before a closing occurs or an earlier date set by the company. You will be sent a reminder notification approximately five days before the closing or set date giving you an opportunity to cancel your investment if you had not already done so. Once a closing occurs, and if you have not canceled your investment, you will receive an email notifying you that your shares have been issued. If you have already funded your investment, your funds will be promptly refunded to you upon cancellation. To cancel your investment, you may go to your portfolio page


    What if I change my mind about investing?

    If you invest under any other offering type, you may cancel your investment at any time, for any reason until a closing occurs. You will receive an email when the closing occurs and your shares have been issued. If you have already funded your investment and your funds are in escrow, your funds will be promptly refunded to you upon cancellation. To cancel your investment, please go to your portfolio page.