Even though long-term leasing is popular, many Americans aspire to be homeowners. However, it's safe to say that getting a mortgage isn't exactly a walk in the park.
That's why Vishal Garg founded the famous Better.com. His objective was to improve the process of becoming a homeowner for more people by offering insurance.
Additionally, Better.com intended to merge with SPAC to list on the stock market eventually. However, did the company go forward with it? If you want to know more about Better.com IPO, stick around!
In May 2021, Better.com announced its agreement with special purpose acquisition company Aurora Acquisition to go public.
Although the exact IPO date wasn't set or revealed, most sources reported that the SPAC merger and Aurora Acquisition Corp. were likely to close the deal sometime around the fourth quarter of 2021.
However, the whole operation was put on hold, and everything took a turn for the worse following allegations of fraud, misappropriation of funds, and a controversial layoff.
If Better.com merged, went public, and achieved a valuation of $7.7 billion, it would have ranked third in terms of value among nonbank mortgage companies in the U.S. This would imply that only United Wholesale Mortgage and Rocket Mortgage would outperform Better's value.
Nevertheless, recent updates reveal that both Better and Aurora Acquisition aim to close the deal before the end of 2022.
Given the fluctuating market and the company's contentious recent years, there isn't much information on an expected share price.
However, it should be revealed closer to the company's IPO date.
Since its initial merger announcement, Better.com has been mired in controversy. In 2021 alone, the SoftBank-backed business cut off about 60% of its workers and reported a $304 million loss.
This includes the notorious Zoom call in which co-founder and CEO Vishal Garg abruptly fired 900 employees. This controversial call sparked widespread outrage and led to even more debate.
Following that, one of Better's former employees, Sarah Pierce, reportedly filed a complaint against the company for misleading investors during its first public offering attempt.
Better.com currently holds a valuation of $6 billion after its most recent April 2021 fundraising round, which raised $500 million alone.
The company has raised $905 million over the last seven years. In light of that, let's look at Better.com's private fundraising rounds.
● 2014: Better.com conducted a seed capital round in collaboration with Avex Funding.
● 2016: The company raised $30 million from a funding round in July.
● 2017: In February, better.com raised an additional $15 million in the Series B fundraising round.
● 2019: Better.com launched its Series C round in January, raising $160 million.
● 2020: L. Catterton spearheaded Better.com's biggest funding round was in November, bringing it an extra $200 million.
Although there was a discussion of Better.com going public in 2021, it has yet to happen.
Furthermore, the business has had its fair share of controversy, which has negatively influenced its performance. But despite all the hardship, Better.com stays strong and resilient.
The information in this article is well-researched and factual. Still, it contains opinions also, and IT IS NOT FINANCIAL ADVICE and should not be interpreted as such, do not make any financial decisions based on the information in this article; we are not financial advisors. We are journalists. You should always consult with a professional before making any investment decisions.
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