Can Thryv actually make loan servicers your friend?

Company Overview

Brief: Thryv is a loan servicing platform aiming to change the mortgage market. Thryv's cloud-based software is borrower-centric and helps to reduce fallout for loan servicers. The company generates revenue by offering subscriptions to its platform and plans to develop partnerships with organizations to offer value-added services to borrowers.

Key People: Founder and CEO Christian Rotter (ex-Accenture manager, also CEO and founder of Crowd Capital), COO Wayne Snell (nearly 30 years in software business with 20 of those years spent in marketing, participated in three company exits).

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Terms

Security Type: SAFE

Valuation: $10,000,000 (Early Bird discount)

Amount Raised: $84,869

Minimum Investment: $100

Takeaway

Here's what I like: It’s important to mention that Thryv is a technology platform owned by Crowd Capital Co. Crowd Capital is a fintech company that specializes in advanced loan servicing technology. The company has developed a platform that enables lenders to efficiently manage and service loans in the secondary market. The platform streamlines the loan servicing process, saving lenders time and resources while providing a better experience for borrowers. This is an important distinction because it means Thryv plays a crucial role in offering both a simple tech solution to borrowers, while simultaneously mitigating risk for lenders looking to score big by investing in private mortgages.

The market is huge ($1 trillion plus) and getting bigger every year.

The founding team is strong, with more than 50 years of collective experience.

What separates Crowd Capital/Thryv from most lending platforms is how it is addressing the problem. Typical platforms focus on the lender only, providing access to more deal flow or simplifying the acquisition process by using technology to pre-vet private borrowers in order to de-risk investments. Or, they offer less secure borrowers more access to lenders by helping them improve their investment profile.

In the case of Crowd Capital/Thryv, it is doing both. And it's improving the likelihood of repayment by offering tools to better manage and service private loans, which it monetizes through a basic subscription model.

This is where Thryv comes in. The platform makes it easier for borrowers to upload and manage their loans while simultaneously enabling lenders to mitigate risk through a machine learning program that monitors borrower purchase behavior.

Here's what I don't love: I actually don’t have any real issues with this deal from a valuation or concept standpoint. In fact, I would argue there is a huge market to go after (despite an increasingly crowded market), and this approach is pretty novel.

But (and it’s a BIG but), as mentioned above, you are investing in Thryv, not in its parent company Crowd Capital. This is not something I am typically interested in because it creates too much confusion on where the value is being created.

Personally, I’d prefer to just invest directly into Crowd Capital. Unless Crowd Capital sells Thryv off separate from its core business, how am I ever going to get out? Additionally, in any future acquisition of Crowd Capital, how will the buyer evaluate where and how revenue is rolled up to determine a fair market value? As I see it, investing in the servicing platform is less lucrative than investing in the lending side of the business.

Who should invest and why: On its own, Crowd Capital Co's advanced loan servicing platform is compelling in a growing secondary loan market. The company's management team and innovative technology make it well-positioned to capture a significant share of this growing market and the deal terms of a $10M valuation, with $100 minimum investment keeps the deal pretty affordable.

Investors will just need to decide if they like the upside enough to invest in the tech side of the business as a way to gain exposure in this massively lucrative market.

Invest in Thryv here 👉 Term Sheet

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