Home equity platform Fraction raises $16 million

Canadian Fraction closed a $16 million Series A funding round led by QED Investors , along with existing investors including Impression Ventures, Primetime Partners, Panache Ventures and Global Founders Capital. Notable angel investors of the round include the founders of Brex and the founding team of Bitso.

The new round of financing will be primarily used to fuel Fraction’s expansion into the US market and continue to develop its product offerings to provide even more transparency and flexibility for homeowners to manage their home equity.

Fraction is a fintech solution that enables homeowners to access the equity in their home with no monthly payments. The company’s clients have benefited from Fraction’s cash payments to reduce existing debts, invest in their home, buy a new home and cover unexpected expenses. Since launching in February 2021, Fraction’s clients have received an average of $350,000 from their home equity. This home equity loan is an improvement to the existing mortgage and home equity landscape, in that there are no required monthly payments, and the interest rate is based on the appreciation of your home.