Lendsnap
The business, the turning points, and the decisions behind them.
01 / WHAT IT BUILT
What the company did
Lendsnap was a Walnut Creek, California fintech founded by CEO Orion Parrott. Its website and smartphone app gave users a quick way to fill out mortgage applications, and its platform helped lenders streamline document collection by connecting directly to borrowers' financial accounts.
02 / Lendsnap FAILURE REASONS
Failure factors
Founder Orion Parrott told Early Investing that Lendsnap failed to get enough lenders to adopt its mortgage-application tech amid rising feature/integration demands and competition, lost a 2019 paid pilot with its top five verbally committed lenders, and could not find a buyer after talking to more than 40 companies.
Could not convince enough lenders to use or pilot its technology; top-five paid pilot fell through in 2019.
After searching throughout 2019 and talking to more than 40 companies, could not find a suitable partner to purchase assets.
Lenders preferred owning technology rather than licensing Lendsnap’s SaaS model.
03 / EVENT HISTORY
Events in the structured record
- Operations ended
Lendsnap was forced to shut down in 2019 after failing to win lender pilots and finding no buyer; the company shut its doors for good and investors were not compensated.
04 / CONTEMPORARY REBUILD ASSESSMENT
Difficulty of rebuilding this project today
Material for this section is being gathered and checked. It will appear here once ready.
Overall assessment: Not completed
05 / CAUSAL CHAIN
How the factors connect
- 01
Could not convince enough lenders to adopt its SaaS technology; lenders wanted to own their own technology rather than license it.
- 02
In 2019 the top five lenders who had verbally committed to a paid pilot declined to approve the trial.
- 03
Founder Orion Parrott searched for a buyer among more than 40 companies but found no suitable partner.
- 04
PitchBook records the company as Out of Business as of October 21, 2019.
- 05
No public loss figure was disclosed.