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Founded in 2017 by Eric Rachmel, Brace is a Los Angeles-based software company that develops AI-driven digital solutions to automate workflows for the mortgage servicing industry, specifically focusing on loss mitigation and default management. The company operates a subscription-based software-as-a-service business model that provides mortgage lenders and servicers with platforms to process foreclosure documents and manage delinquent loans. Prior to its acquisition, the enterprise raised approximately $30 million in total venture capital funding across four completed deals, including a $10 million Series A round led by Point72 Ventures in February 2020. The company subsequently secured a $15.7 million Series B financing round in August 2023, which was led by Canvas Ventures and its general partner Rebecca Lynn. Shortly after its final funding round, the business was officially acquired by the digital mortgage platform Stavvy in August 2023.
Brace.ai has raised $2.0M across 1 funding round.
Brace.ai has raised $2.0M in total across 1 funding round.
Brace.ai (also known as Brace Software) is a fintech company that built a digital platform for mortgage servicing, focusing on loss mitigation, default management, and foreclosure document execution. It served mortgage servicers, lenders, home equity lenders, and homeowners by streamlining workflows, enabling real-time decisioning, and improving efficiency in handling delinquent loans.[1][2][3][4]
The platform solved critical pain points in the mortgage industry, such as slow paper-based processes, inconsistent underwriting, and poor homeowner engagement, by offering tools like a Homeowner Engagement Portal, Centralized Responsive Application, Rules Engine, and event-driven communications. Brace raised $30M, achieved traction with top U.S. mortgage servicers, and was acquired by Stavvy in August 2023, enhancing Stavvy's end-to-end digital mortgage solutions with AI-driven workflows.[1][2][3]
Founded in 2017 in Culver City, California (with some sources noting New York ties), Brace was established by Amr Mohamed and Eric Rachmel to modernize mortgage servicing amid outdated processes.[1][3][4] The idea emerged from recognizing inefficiencies in loss mitigation and foreclosure handling, particularly as homeowners faced challenges post-financial hardships like those during COVID-19 forbearances.[2]
Early traction came from securing funding from investors including Canvas Ventures and Roofstock, totaling $30M, and onboarding major clients among the top ten U.S. mortgage servicers. A pivotal moment was the 2022 launch of its next-generation Default Management Platform, which integrated workflows, tasking, and reporting for faster, compliant operations. This culminated in its 2023 acquisition by Stavvy, combining Brace's servicing tech with Stavvy's eClosing and notarization capabilities.[1][2][3]
Brace rode the fintech wave digitizing real estate and mortgage processes, accelerated by COVID-19's push for remote, contactless servicing and the shift from originations to defaults as forbearances ended.[2][3] Timing was ideal amid rising regulatory demands for equitable loss mitigation and investor guidelines from GSEs like Fannie Mae and Freddie Mac, where digital tools reduced errors and delays.[2]
Market forces favoring Brace included servicers' need to handle volume surges efficiently, integrations with platforms like ICE Mortgage Technology, and the RON/eSignature boom. Post-acquisition, it influences the ecosystem by powering Stavvy's comprehensive solutions, enabling partnerships (e.g., Guaranteed Rate, Covius) and setting standards for transparent, stakeholder-centric mortgage tech.[1][3]
Under Stavvy, Brace's tech will likely expand with generative AI for customizable workflows, targeting broader default management and potentially international markets as digital lending grows.[1][3] Trends like rising delinquencies from economic pressures, RON adoption, and data-driven underwriting will shape its path, evolving its influence toward fully automated, end-to-end mortgage ecosystems.
This positions Brace.ai as a foundational player in transforming antiquated servicing into efficient, homeowner-friendly experiences—unlocking asset value in a maturing fintech landscape.[2][4]
Brace.ai has raised $2.0M in total across 1 funding round.
Brace.ai's investors include AAF Management Ltd., Amicus Capital, Creative Ventures, Insight Partners, Resolute Ventures, Ridgeline Partners, Sapir Venture Partners, Seraphim Space, Tectonic Capital.
Brace.ai has raised $2.0M across 1 funding round. Most recently, it raised $2.0M Seed in February 2018.
| Date | Round | Lead Investors | Other Investors | Status |
|---|---|---|---|---|
| Feb 1, 2018 | $2M Seed | — | AAF Management Ltd., Amicus Capital, Creative Ventures, Insight Partners, Resolute Ventures, Ridgeline Partners, Sapir Venture Partners, Seraphim Space, Tectonic Capital | Announced |
