LoanSnap's Troubled Future: What Happened After Raising $100M

After raising $100M, AI fintech LoanSnap gets sued, fined, evicted. AI mortgage startup LoanSnap, backed by Reid Hoffman, Richard Branson, and the Chainsmokers, is facing lawsuits and eviction from its Southern California headquarters, causing employee concerns about its future, according to TechCrunch.

PitchBook reports that LoanSnap, created by serial entrepreneurs Karl Jacob and Allan Carroll, has raised $100 million since its 2017 seed round, $90 million of which was raised between 2021 and 2023. LoanSnap lists Virgin Group, Mantis Ventures, Baseline Ventures, and Reid Hoffman as investors. PitchBook believes the business borrowed $12 million.

Two LoanSnap employees say the company's atmosphere is tense as they await a decision. The corporation missed payroll in December 2023 and January 2024, reducing personnel. LoanSnap hired over 100 at its peak. A source says layoffs and attrition reduced that number to just 50.

Rise and fall of LoanSnap In 2023, another VC invests millions. Much of this litigation was filed in late 2023. According to the FHA settlement, LoanSnap had financial issues, layoffs, BBB and CFPB complaints, and a recognized Silicon VC had left from the board. The problems were apparent before then.