Tomo Networks, a financial technology startup with an office in Stamford, has launched a new end-to-end digital mortgage and home-purchasing platform.
Founded by former Zillow executives Greg Schwartz and Carey Armstrong, Tomo raised $70 million in seed funding for a platform that is “aimed at disrupting the archaic homebuying experience,” the company said in a statement.
The Tomo Mortgage platform includes pre-approvals within hours and closings that are guaranteed to happen on-time, the company said. With buyers facing rising home prices and competition from all-cash offers, the company said reducing the time to close the mortgage would help homebuyers compete.
“In today’s housing market, buying is not an enjoyable experience; it has become competitive, stressful, and confusing, and too many people are coming away from it empty handed,” Schwartz, who is also Tomo’s CEO, said in the statement. He added: “In the current frenzy, what is being lost is the personal touch, the humanity, and the excitement that should go along with buying a home. Tomo is going to restore that. We will work only with buyers, we won’t do refinancings, and we will close on-time, every time. No one else in this space can say that and mean it.”
Tomo will launch in Seattle, Dallas and Houston and add more markets later this year. The company said it would “target areas where rising home prices and competition are crippling first-time and millennial homebuyers.”
“Tomo’s expert teams will be bringing humanity back to home buying in their dedicated markets whenever and however our customers need it – seven days a week via text, phone, email, or video,” said Armstrong, who is Tomo’s co-founder and chief revenue officer. “Through our platform and customer-obsessed service, there will be no more guessing about where you stand on your journey.”
Tomo also has a brokerage platform that will connect buyers to local real estate agents. The company launched a partnership earlier this year with the real estate coaching and training company Tom Ferry to build its network.
In addition to Stamford, Tomo has offices in Seattle and Austin, Texas. The $70 million funding round was led by Ribbit Capital along with DST Global, NFX, SVB Capital and Zigg Capital.
Gov. Ned Lamont’s office announced that Tomo had picked Stamford for its corporate headquarters thanks to “earn-as-you-grow” incentives from the state Department of Economic and Community Development that provide grants in arrears as job targets are reached. The potential total amount of state aid that Tomo could reap was not disclosed.
