industry spotlight

Mortgage Tech

Tap into the mortgage tech industry, where algorithms process data and automate workflows, transforming how we secure home loans.

Mortgage industry overview

The mortgage tech industry is forging ahead, fueled by millennials’ demand for faster, more convenient mortgage applications. As the largest home buying demographic, their preference for digital solutions has led to a 78% increase in investor funding for mortgage fintech companies and a growing interest in PropTech.

Why it matters:

Automation of standard mortgages and high investor returns create prime opportunities for startups to capitalize on:

  • API-enabled software systems
  • Embedded mortgage platforms
  • Financial wellness tools
  • Cybersecurity for lenders

Between the lines:

Get ready to balance efficiency with strict regulations and build trust with borrowers regarding sensitive data.

We’ve worked with numerous mortgage tech startups, so our team knows what it takes to build a successful and investor-attractive business in this landscape

Secured in funds
Ventures advanced
Industries explored

What we do:

We’re a one-stop shop for fundraising assistance, outsourced M&A advisory, business growth consultancy, and impeccable pitch deck design.

Go deeper:

Check out our mortgage tech market research to discover industry trends, potential startup risks, and crucial tips on getting funding.

4x growth
The global tech-enabled mortgage market size will reach $52.9 billion by 2032.


Millennials prefer an entirely online mortgage application process.

Powered by advanced technologies and the growing demand for seamless, secure, and efficient mortgage processing solutions

Mortgage inquiries now come from mobile devices.


Lenders plan to use AI for loan underwriting by 2025.


Sheets of paper can be saved annually with paperless mortgages.

Leading mortgage tech venture capital firms

Write to us to know more

Mortgage tech industry challenges

The innovative mortgage tech sector promises increased efficiency and a smoother borrower experience, but the path for startups isn’t smooth at all.

Data security and privacy:

The digitalization of mortgage processes has increased the risks of breaches, which may lead to the theft of sensitive borrower information, including Social Security numbers, financial details, and personal data.

Why it matters:

Insufficient data security may cause:

  • Loss of consumer trust
  • Postponed growth and scale
  • Hindered investors trust

What it takes:

  • Advanced encryption to protect data both in transit and at rest can help mitigate risks
  • Regular audits and assessments to identify and address potential security gaps
  • Employee training for cybersecurity best practices and the importance of data privacy

Integration with legacy systems:

Many mortgage lenders still rely on outdated legacy systems not designed to integrate with modern digital solutions.

Why it matters:

The inability to integrate new technologies can lead to:

  • Operational bottlenecks
  • Higher processing times
  • Increased costs
  • Poor customer experience

What it takes:

  • Adopt APIs to bridge the gap between legacy systems and new technologies for a smoother integration
  • Invest in scalable cloud-based solutions for a flexible and future-proof IT environment
  • Adopt a phased approach to tech implementation, gradually replacing legacy systems with modern solutions

Regulatory compliance:

The industry’s ever-changing regulations require startups to stay updated on all laws. However, these regulations protect consumers and ensure fair lending practices.

Why it matters:

Problems with regulations usually lead to:

  • Hefty fines
  • Loss of business licenses
  • Damaged reputation
  • Loss of customer trust

What it takes:

  • Invest in compliance management systems, such as data security or anti-money laundering solutions, to automate monitoring and updates for regulatory changes
  • Regularly conduct audits to ensure compliance with relevant laws
  • Provide frequent training for staff on compliance protocols and informed decisions

Securing funding:

The upfront investment for advanced tech impacts funding for mortgage startups. Market competition and investor sentiment also matter.

Why it matters:

Insufficient funding usually leads to:

  • Problems with scaling operations
  • Inability to invest enough into R&D

What it takes:

  • Tailor your pitch deck to clearly demonstrate unique value, market opportunity, and financial forecasts
  • Demonstrate traction and scalability to attract investors
  • Implement an effective investor outreach to connect with the investors who are interested in your type of business


What is the role of technology in mortgage lending?

Technology in mortgage lending streamlines the application process and improves customer experiences with features like automated underwriting, enhanced security measures, and better communication. Notably, it could reduce costs for both lenders and borrowers.

How attractive is the industry to potential mortgage tech investors?

The mortgage tech industry is a hot spot for investors. Fueled by a growing housing market and the potential to revolutionize the loan process, the mortgage tech sector offers significant investment opportunities and promising returns.

If you are a mortgage tech startup, how easy is it to raise funds today?

Mortgage tech is a hot space, but expect tough competition. Investors prioritize startups with robust compliance automation, AI underwriting, or proven ability to navigate a rising rate environment.

How long does it take to create a pitch deck and financial model for a mortgage tech startup?

Creating all the documentation typically requires two to three weeks. However, the exact duration may vary depending on the project complexity and our team’s workload.

What are the key mistakes in pitch decks in mortgage tech startups?

Lack of a compelling investment narrative, a solid competitive moat, and a clear path to profitability are the key mistakes we’ve observed in many startup decks. These shortcomings can make investors overlook your pitch, even if your solution is really promising.

How competitive is the mortgage tech market?

The mortgage tech market is fiercely competitive. Non-traditional lenders are experimenting with new technologies, while legacy lenders are adopting solutions to keep up.

What services do you provide for investors looking to invest or already investing in the mortgage tech sector?

We help investment funds conduct thorough due diligence on promising mortgage tech projects and offer complete fundraising support to their portfolio companies.

Do you provide mortgage tech startup M&A support?

Absolutely! Whether you need help pinpointing M&A perspectives, creating coherent CIMs, or crafting the models for buy-side and sell-side deals, we are always at your service.

Do you make intros to mortgage tech startup VCs?

Certainly! If your project aligns with aspects such as round size, team, and product, we can connect you with the most relevant mortgage tech VCs. This service is part of our broader investor relations package, which lines up potential investors, prepares founders for the initial meetings, and helps forge cooperation post-deal.

Do you have data or research available to purchase on the mortgage tech market?

Yes, we do! Our mortgage tech market research includes industry reports, competition analysis, etc. We use only reliable data sources to collect the most relevant information for you, such as the industry’s challenges, market trends, and competitive dynamics.

Which growth stage of companies have you worked with in the past?

We provide growth and fundraising support for mortgage tech companies, from Pre-Seed through Series C and beyond.

Building a solution in mortgage technology? Get in touch with us

Fuel your next stage of growth with Waveup—your one-stop shop for fundraising support, outsourced M&A advisory, growth strategy consulting, and presentation design. Leave your email, and let's chat!

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