Vesta raises $30M to scale its AI-native mortgage platform

Vesta, an AI-native mortgage software startup, has announced a $30 million funding round led by Conversion Capital. Customers Pennymac and New American Funding participated in the round, along with Citi Ventures and Andreessen Horowitz. The company has raised $85 million to date and said revenue is up 12x year over year. The new capital will be used to expand its team and invest in new product lines.

Founded in 2020 by Mike Yu and Devon Yang, Vesta automates much of the mortgage origination process using AI agents, helping lenders reduce processing time and costs. CEO Mike Yu said demand has “exploded in the last year,” and while traction is strong, the company still holds less than 5% market share, making it the right time to scale up and pursue new opportunities.

Among the new product lines is a personal assistant for mortgage issuers that can perform tasks and track workflows. Lenders can decide which tasks to assign to Vesta's AI agents, and some already use them to support underwriting decisions. The company stressed that lenders remain responsible for underwriting decisions, and all agent actions and reasoning are recorded for compliance and audit purposes.

The increased autonomy is driven by recent improvements in AI models. Yu cited Claude Sonnet 4.5 as a key breakthrough for its ability to follow user-configured instructions over longer time horizons. Vesta competes with legacy systems like ICE Mortgage Technology and other AI-native firms such as Xpanse. According to Yu, legacy platforms were not built for AI agents, making it difficult to layer agents on top of them. Vesta's immediate priority is to win business across the broader mortgage industry.