Mortgage startup Better announces closing of business combination
Better HoldCo, and Aurora Acquisition Corp., a special purpose acquisition company, announced the closing of the previously announced business combination that results in the creation of Better Home & Finance Holding Company, a publicly traded company with Class A common stock and warrants to be listed on the Nasdaq Global Market and the Nasdaq Capital Market, respectively, under the ticker symbols “BETR” and “BETRW.” Better Home & Finance expects trading to commence on August 24, 2023.
The business combination with Aurora unlocks approximately $565 million of new capital, including a $528 million convertible note previously committed from affiliates of SoftBank and additional common equity from funds affiliated with NaMa Capital.
The additional capital will allow Better to continue developing “innovative technology” including Tinman, its proprietary loan origination platform, to improve internal efficiency and streamline the homeownership experience for customers. Better also powers Better Cover, an insurance agency offering home, auto, and life products.
Since launching, Better.com has surpassed $100 billion in funded loans. The startup has made several workforce cuts, shrinking its headcount by nearly 80% over the past two years according to LinkedIn data.
“Since day one, we set out on a mission to create better solutions for one of life’s most important investments. Today, we’re proud to take a huge step in expanding our capacity to innovate the homeownership process by becoming a publicly listed company. While this is a time for celebration, our journey is far from complete. With the support of our tremendous team, our innovative technology, and previously committed additional capital from SoftBank, Aurora, and NaMa Capital (formerly Novator Capital), we are well-positioned and eager to forge ahead and continue pushing the boundaries of innovation in homeownership for our customers and shareholders.” – Vishal Garg, CEO & founder of Better and CEO and director of Better Home & Finance.
“Going public is a momentous occasion and we are thankful to share it with our employees, shareholders, and regulators. We view this as a milestone, not a destination, and an opportunity to renew our commitment to making the homeownership experience better for our customers. We are proud of reaching over $100 billion in funded volume and of the technology we have built, but Better’s best days still lie ahead. Going public positions us well to build a business that will thrive through cycles and we look forward to being good custodians of shareholder capital.” – Harit Talwar, chairman of the Better Home & Finance board of directors.