The Mortgage Collaborative , an independent cooperative network, announced the first investment of its recently launched TMC Emerging Technology Fund LP (TMC Fund). The venture capital program is funded by a self-selected segment of TMC members to capture opportunities driven by the rapid pace of technological change in the mortgage sector.
The investment is a participation in Maxwell’s Series B Preferred Share financing, which was led by Fin Venture Capital and TTV Capital. TMC’s Executive Chairman, Jim Park, remarked that TMC was fortunate to be invited into this over-subscribed round because of Maxwell’s recognition of the potential strategic value TMC’s Emerging Tech Fund could bring to Maxwell, in addition to its financial investment.
“More than the financial investment, we’re looking forward to the strategic value the TMC Emerging Tech Fund’s limited partners will add to Maxwell as the mortgage industry evolves,” said John Paasonen, Co-Founder and CEO of Maxwell. “Their investment has brought forward-looking mortgage companies around the table who will accelerate the impact our solutions will have in the market.”
There are several TMC Lender Members that are finding new ways to participate in the ‘Power of the Network’ through TMC’s Tech Fund, including Owen Lee, co-owner of Success Mortgage Partners.
“What I find so unique about being a limited partner in TMC’s Emerging Tech Fund, is the opportunity to control my own investment dollars,” Lee said. “Maybe more importantly, since the future-state of the mortgage industry will include more technology and not less, this role helps me stay educated and prepared as a business operator for what is coming next in our industry.”
The Fund Manager of the TMC Fund, Sandy Selman from Asia West Inc., commented: “This transaction is a terrific foundational investment for the TMC Fund because of the demonstrated commercial success of Maxwell, the high caliber of their management team, and the quality and breadth of the syndicate. It puts us on the map and creates the strategic context for our deal pipeline well into 2021. We look forward to working with the Maxwell team to help them realize their commercial goals.”
TMC’s Emerging Technology Fund is actively looking at investment opportunities that will result in higher profitability and business process improvements for TMC members.