Why We Invested in Yave

Psyched to take the lid off an exciting company in LatAm: Yave! 

Yave is effectively Rocket Mortgage + Blend + more, for the Mexican real estate market.

We co-led the investment along with our friends from MetaProp, as well as a number of notable proptech and real estate angels.

Yave is a digital mortgage originator, partnering with builders and real estate developers on one hand to distribute mortgages to their buyers, and then mortgage REITs and banks on the other hand to digitally onboard and service those borrowers.

We were surprised to learn that while home ownership is quite high in Mexico, mortgage penetration is very low because of a lack of trust in the financial institutions, and because of high informality in the economy — people building their own homes, using LOCs and such.

Meanwhile, the biggest 5 banks and the government are the only lenders and there's no secondary market for mortgages, so all of that risk just sits on bank balance sheets. There's no incentive to modernize, the loans are expensive, and the process is extraordinarily slow and opaque.

We believe a large demographic shift is underway in how people want to buy homes, and how people want to finance them. Yave is uniquely situated to ride that wave, creating a liquid secondary market, and bringing cheaper and easier financing to Mexican homeowners.

Congrats to Bernardo Silva, Andres Avalos Aguilar, Luis Barrantes, and team! 🚀