AI Startup Valon Raises $150M in Series D Funding

Why the Funding Matters

Valon will use the new funding to accelerate product development and expand its teams across engineering, product, deployment, and go-to-market.

The company plans to use these resources to help mortgage servicers transition from legacy systems to ValonOS and its AI agents.

Who founded Valon?

Valon was founded in 2019 by Andrew Wang, Linda Du, and Jonathan Hsu.

The company operates from New York City and San Francisco.

“For sixty years, mortgage servicing has run on aging mainframe systems, and every regulatory change has compounded technical debt and increased costs. That is no longer the only option. ValonOS is the operating system the industry is moving onto, and this financing lets us bring it, and the AI agents that run on it, to every servicer in the country,” said Andrew Wang, co-founder and CEO of Valon.

“Replacing core servicing technology is a significant decision, and not one ServiceMac took lightly,” said Rod Hatfield, Chief Operating Officer and Executive Vice President of ServiceMac. “After more than 30 years in this industry, I know meaningful change requires thoughtful modernization.

Market and Business Growth

Valon first built and operated a full-scale mortgage servicing business using its own technology before offering ValonOS to other companies.

Within six months of launching ValonOS for the broader industry, the company signed more than $200 million in contracted annual recurring revenue.

ValonOS is set to power mortgage servicing for institutions including Rithm Capital's Newrez, Carrington Mortgage Services, and ServiceMac. The company says one in six outstanding U.S. mortgages is under contract to run on its platform.

Two of the 10 largest U.S. servicers are currently live on ValonOS: ServiceMac, the fourth-largest residential subservicer, and Carrington Mortgage Services.