Investing in Setpoint to streamline capital market workflows

With the rise of fintech over the last decade, the asset-based finance (ABF) market — the ecosystem built around lending using non-cash assets as collateral — now faces more complexity than ever before. Traditionally dominated by banks, ABF has seen private lenders’ market share rise from one-third in 2006 to nearly half today alongside an increase in non-bank loan originators and vertical-specific fintech products.

While ABF has evolved in recent years, its processes have not: most lenders and loan originators still rely on outdated manual workflows and cobbling together emails, spreadsheets, paper documents and legacy software to share data. With the increasing sophistication of the market demanding error-free and efficient workflows, we believe that now is the perfect time for a solution that streamlines the originator and lender relationship.

That's why we’re excited to invest in Setpoint. Founded in 2021 and based in Austin, TX and New York, NY, Setpoint provides a platform that centralizes, automates and optimizes warehouse and securitization management for non-bank loan originators and lenders.

Setpoint’s platform streamlines and digitalizes capital market workflows through two modules:

1. Asset OS supports document management between originators, lenders and third-party reviewers by digitizing, standardizing, centralizing and verifying assets such as loan agreements, collateral documents and financial data. Setpoint also performs third-party reviews to verify if origination followed all underwriting standards, laws and valuation guidelines.
2. Capital OS optimizes capital allocation, calculates and forecasts borrowing base, verifies compliance and concentration limits, and monitors portfolio performance with real-time KPI metrics. Setpoint can also verify amounts due to investors and facilitate payments, acting as calculation and/or paying agent.

As a two-sided platform that functions as an intermediary in the loan origination process, Setpoint is well-positioned to grow via network effects and ultimately serve both sides of the ABF market by providing streamlined workflows to both lenders and originators.

Setpoint’s revolutionary solution for automating the ABF market is the brainchild of a founding team of seasoned entrepreneurs. CEO Stuart Wall previously founded then ultimately exited Signpost.com, a purpose-built CRM platform for service firms, while President Ben Rubenstein and CIO Michael Lam co-founded Opcity, a digital real estate company acquired by Realtor.com. Together, the Setpoint team has built a strong customer base and brand in the private debt market ecosystem, fast emerging as a leader in the space.

As one of the largest players in asset-based lending, Citi is excited to leverage Setpoint’s technology and services. Setpoint is connecting lenders like Citi and originators like many of Citi’s clients in a modern way, improving market efficiency and client experience.

Given our conviction that Setpoint has built the right solution at the right time, along with the company’s ability to scale significantly and its veteran founding team with a strong history of growing startups to successful exits, we’re thrilled to announce our investment in Setpoint’s Series B round. We join lead investor 645 Ventures, a16z, Wells Fargo, Nextview Ventures, Fifth Wall, Floating Point, Stonecroft, 75andSunny, Vesta Ventures and others. Our congratulations to Stuart, Ben, Michael and the entire team! We look forward to supporting Setpoint in its mission to create a single source of truth for capital markets teams.

To get in touch with the Setpoint team, reach out to them here.