Austin-based startup Setpoint has announced a successful Series B funding round, raising $31 million to revolutionize the loan compliance process for businesses. The round was led by 645 Ventures and included strategic investments from financial giants Citi and Wells Fargo.

Setpoint's innovative software enables companies to seamlessly update loan information and instantly share financial data with banks and other large financial institutions providing them with credit facilities. The platform tracks various dynamic factors such as interest rates, FICO scores, and other shifting variables, ensuring compliance with credit facility terms.

Initially focusing on the real estate sector, Setpoint has now expanded its services to include auto credit and various consumer services offering financing options to customers. The startup's clientele includes notable companies like online car seller Carvana and home buying startup Pathway.

Jon Smith, partner at 645 Ventures, highlighted the untapped potential in the loan compliance software market, stating it as an esoteric yet substantial field ripe for technological disruption. Setpoint's co-founder Stuart Wall expressed optimism in tapping into a flywheel effect by persuading large financial service providers to adopt their software. This strategy could potentially lead to wider adoption by their counterparties, including banks like Citi and Wells Fargo.

Wall refrained from disclosing specific financial details but mentioned Setpoint generated nearly $20 million in revenue last year. The Series B funding follows Setpoint's successful $43 million Series A round led by Andreessen Horowitz in 2022, further solidifying their position in the market.

In addition to 645 Ventures, Andreessen Horowitz, NextView Ventures, Floating Point, Henry Kravis, 75 & Sunny, Vesta Ventures, FifthWall, Eltura Ventures, and Outrunner Capital also participated in the Series B funding round.

Setpoint's innovative solution aims to streamline the loan compliance process, reducing the tedious task of exchanging massive Excel sheets. By providing real-time financial data updates, Setpoint empowers businesses to maintain compliance and strengthen their relationships with financial institutions.