Tidalwave Lands $22m Series A Funding Led By Permanent Capital, D.r. Horton

Mortgage technology startup Tidalwave has raised $22 million in a Series A funding round to expand the market share of its agentic artificial intelligence (AI)-powered point-of-sale platform, the company announced Friday.

The round was led by Permanent Capital, with participation from homebuilder D.R. Horton and Engineering Capital., bringing Tidalwave’s total funding to $24 million. 

Tidalwave said its platform uses agentic AI — specialized autonomous software agents that perform end-to-end mortgage tasks such as verifications and underwriting — in an effort to reduce the industry’s average 43-day loan closing timeline. The platform integrates with Fannie Mae, Freddie Mac and other partners including Plaid, Argyle and Truv.

“The mortgage industry has long been reliant on disjointed tools and manual intervention, leading to costly delays and errors,” Diane Yu, CEO and co-founder of Tidalwave, said in a statement. “With this new funding, we’re supercharging the buildout of intelligent AI agents, allowing us to get these tools into the hands of lenders and borrowers faster than ever.”

The company expects to reach roughly 4% market share in 2026, powering more than 200,000 loans annually. The Mortgage Bankers Association (MBA) projects $1.46 trillion in originations next year.

Mark Winter, CEO of D.R. Horton’s subsidiary DHI Mortgage, said in a statement that after working with Tidalwave in recent months, he is confident that “together, we will transform lending for years to come.”

As part of the funding round, Jason Duboe, co-founder and managing partner at Permanent Capital, joined Tidalwave’s board of directors. He said the company’s technology is “already delivering measurable impact.”

This month, Tidalwave appointed Jason Cao, an early investor, as its chief operating officer. Other recent hires include former Intercontinental Exchange executives Chris McLendon (chief revenue officer) and John Stephenson (head of national sales), as well as Frank Pastirchak, formerly of nCino and Reggora.

The company also added Ivón Vazquez, who helped build Encompass and SimpleNexus, and Shelby Huster, a longtime Ellie Mae consultant. 

In a recent interview with HousingWire, Yu said Tidalwave currently has about 40 employees.