Spruce Title Is The Next Big Startup
Aug 28, 2017 · 2 min read
A little busy preparing for a college test, so don’t have enough time to flesh out this whole article and make it really nice. However, still wanted to publish it now so I can later use it as proof that I have a knack for identifying successful startups.
The following are the reasons why I am so high on Spruce.
- It isn’t gimmicky and fulfills an actual need. Oftentimes startups throw out buzzwords or buzz-technologies like ‘AI’ or ‘machine learning’ to drum up attention. However, this simply obfuscates the fact that their product isn’t actually super great/useful. On the flip side, title insurance and escrow is something that pretty much everyone will purchase at some point in their life. Even though the company idea isn’t super sexy, title insurance is really important and necessary.
- The industry is ripe for disruption, and there aren’t many well known competitors in this market. The biggest and most successful that I can think of is Title Source. Spruce’s fresh, technologically advanced title and escrow platform will be a game changer. The fact that Spruce has an API to work with developers shows further how they are technology-minded.
- Title insurance has great margins. Only about 5% of claims are ever paid out. Spruce is in a great field/industry that isn’t yet highly populated.
One potential problem I see for Spruce is the fact that this industry is highly regulated by the government, and new players in the past have faced problems. However, from what I’ve seen Spruce has done a good job getting quickly licensed in many states, so it appears they know what they’re doing.
If only I wasn’t a college student and had money to invest as an angel. Oh well, regardless I’m excited to see how Spruce does.