Valon Technologies announced Monday that it has raised $150 million in Series D funding at a $2.3 billion valuation, doubling its last valuation. New investor Ribbit Capital joined the round, alongside continued participation from existing investors including Andreessen Horowitz.

With the funding, Valon will accelerate product development and expand its teams to move the industry's largest servicers from legacy systems onto ValonOS and its AI agents. The company is hiring across engineering, product, deployment, and go-to-market in its New York and San Francisco offices and remotely.

"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," said Andrew Wang, co-founder and CEO of Valon. "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."

A suburban home at dusk, representing the U.S. mortgages ValonOS services.
One in six outstanding U.S. mortgages is now under contract to run on ValonOS. Image: Unsplash / Trinity Nguyen.

The unusual path: six years running a servicer first

Founded in 2019, Valon took an unusual path into the industry: rather than selling technology directly into mortgage, it first built and ran a full-scale licensed servicing business on its own platform before opening it to others. Within six months of offering ValonOS to the industry, Valon signed more than $200 million in contracted annual recurring revenue — one of the fastest enterprise land grabs in financial software in recent memory.

ValonOS now powers servicing for some of the nation's largest mortgage institutions, including Rithm Capital's Newrez, Carrington Mortgage Services — which acquired Valon's servicing business in August and adopted ValonOS as its core servicing platform — and ServiceMac, the fourth-largest residential subservicer. Two of the ten largest U.S. servicers are live on the platform.

A modern house exterior, the collateral behind the $13 trillion U.S. mortgage market.
Valon took the unusual path of building and running a licensed servicer on its own platform before selling to the industry. Image: Unsplash / Jonathan Cooper.

Deploying AI into a regulated enterprise

The technical bet is that the hardest part of deploying AI agents in regulated industries is not intelligence but context. ValonOS replaces a servicer's fragmented systems with a single operating system for loan data, investor reporting, operational workflows, compliance logic, and money movement — the foundation Valon deploys AI on: one source of truth with deep structured context, tools an agent can call, and an audit trail for everything it does.

"The bottleneck for deploying AI agents into regulated industries is context, not intelligence," said Linda Du, co-founder and President of Valon. "Mortgage servicing is a heavily regulated, edge-case-driven business, and agents need three things to be effective and safe: structured servicing data and context, decision traces behind workflows, and the ability to execute deterministic actions." Valon spent six years running a servicer, she noted, developing an ontology grounded in how mortgage servicing actually works.

AI agents native to ValonOS take on work across mortgage servicing — answering homeowner emails, allocating payments, and running escrow analyses — the kind of high-volume, edge-case-heavy work that has kept most consumer-facing AI out of regulated finance.

Beyond mortgage

Valon's investors see servicing as an entry point, not a ceiling. "Servicing is the hardest, but also the stickiest, way to enter one of the largest debt markets in America," said Angela Strange, General Partner at Andreessen Horowitz, which has backed Valon from the start and participated in every round since. The high-volume transaction processing and strict regulatory requirements of mortgage servicing are shared across commercial, personal, auto, and student lending — adjacent sectors Valon plans to expand into over time, applying the same architecture to new categories of servicing.

The message to the industry is blunt: the era of AI pilots that never touch the core servicing stack is ending. Valon just raised $150 million on the claim that the system of record is the moat — and that one in six mortgages already proves it.