Valon Technologies (“Valon”), the AI-native operating system for regulated finance, today announced 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 this 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. 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,” said Andrew Wang, co-founder and CEO of Valon.

“Andrew, Linda, Brian, and the Valon team are taking on a part of financial services that is badly in need of better technology. A mortgage is the biggest bill most families will ever have, yet the companies that service those loans still rely on complex, hard-to-navigate legacy software. From the beginning, they’ve understood that improving the status quo takes more than better software: you have to service the loans yourself and prove the system holds up at real scale,” said Micky Malka, founder of Ribbit Capital. “We’re proud to back them as they build the trusted platform that mortgage servicing can run on for decades to come.”

ValonOS to Power 1 in 6 U.S. Mortgages

Founded in 2019, Valon took an unusual path: rather than selling technology directly into the industry, it first built and ran a full-scale 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. ValonOS will power the nation’s largest mortgage institutions, including Rithm Capital’s Newrez, Carrington Mortgage Services, and ServiceMac. In total, one in six outstanding U.S. mortgages is under contract to run on the platform.

Today, two of the ten largest U.S. servicers are live on ValonOS: ServiceMac, the fourth-largest residential subservicer, and Carrington Mortgage Services, which acquired Valon’s servicing business in August and adopted ValonOS as its core servicing platform.

“Replacing core servicing technology is a significant decision, and not one ServiceMac took lightly,” said Rod Hatfield, Chief Operating Officer and Executive Vice President of ServiceMac. “After more than 30 years in this industry, I know meaningful change requires thoughtful modernization. Valon’s capabilities support our efforts to help our teams work more effectively, manage risk, meet compliance requirements and deliver the service and accuracy our clients expect. We’re excited about what this partnership will enable.”

Deploying AI into Regulated Enterprise

ValonOS replaces a servicer’s fragmented systems with a single operating system for loan data, investor reporting, operational workflows, compliance logic, and money movement. This is the foundation on which Valon deploys AI: one source of truth with deep structured context, tools an agent can call, and an audit trail for everything it does.

AI agents native to ValonOS take on work across mortgage servicing, from answering homeowner emails to allocating payments and running escrow analyses.

“The bottleneck for deploying AI agents into regulated industries is context, not intelligence. 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. We spent six years running a servicer and developed an ontology grounded in how mortgage servicing actually works. Leaders in the industry are moving to purpose-built systems with full context and the right level of determinism, and the largest servicers in the country are doing it with ValonOS,” said Linda Du, co-founder and President of Valon.

Expansion Beyond Mortgage

Many of the challenges that define mortgage servicing, including high-volume transaction processing and strict regulatory requirements, are shared across commercial, personal, auto, and student lending. Over time, Valon plans to expand into these adjacent regulated sectors, applying the same architecture to new categories of servicing.

“Servicing is the hardest, but also the stickiest, way to enter one of the largest debt markets in America. You have to turn regulation into code, get multiple licenses, and earn the trust of the biggest asset managers in the country. Valon has built the operating system for a $13 trillion mortgage market and is poised to do the same in other asset classes,” said Angela Strange, General Partner at Andreessen Horowitz. “We’ve backed Valon from the start, and have come back in every round since.”

About Valon

Valon is the leading AI platform for mortgage servicing. ValonOS replaces the patchwork of legacy systems that servicers run on with a single operating system and AI agents that handle servicing workflows end-to-end. The result is better, more accurate service for homeowners. Valon built and ran a licensed national servicer on ValonOS before offering it to the industry, and today partners with servicers responsible for one in six U.S. mortgages. Valon is hiring in New York, San Francisco, and remotely. Learn more at valon.ai.

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