Hometap raises $60 million
Hometap, which offers homeowners a loan alternative by allowing them to tap into their home equity, has raised $60 million of “new operating capital.” American Family Ventures, which invested in the startup last year, is leading the round. Additional investors include Bain Capital, ICONIQ Capital, LLC, G20 Ventures, Pillar, and General Catalyst.
The operating capital will be deployed to continue hiring talent across all functional areas, finding new partners, introducing additional alternative financing products and services to support homeowner needs, and expanding operations nationwide.
Founded in 2017, Hometap allows homeowners to receive debt-free cash in exchange for a share of their home’s future value. Homeowners can use the cash to meet a variety of needs from paying off credit-card debt to starting a business to buying a second home. When the home sells or the homeowner settles the investment, Hometap is paid out an agreed-upon percentage of the sale price or current appraised value.
From January 1 to October 31, 2021, Hometap says that it had made four times as many home equity investments as it had during the same time period in 2020, and has more than doubled its employee headcount in the past year.
“Since we made our first investment in Hometap in 2018, we’ve strongly believed in its mission to give homeowners a more accessible way to create liquidity and financial flexibility from what is oftentimes their largest asset. By leading this funding round, we’re casting another vote of confidence in the team’s ability to accelerate its progress. We look forward to a continued partnership that makes a positive difference in the lives of homeowners.” – Dan Reed, managing director at American Family Ventures.
“I am excited about our growth trajectory and am truly grateful to our team for working tirelessly to put homeowners first as we continue to scale the business. This new funding will reinforce our ongoing efforts to build our talented team, rapidly expand our operations, and grow our partner programs and distribution channels. We remain focused on delivering alternative financing solutions to more homeowners in need while continuing to provide the personalized service they’ve come to expect from us.” – Hometap CEO Jeffrey Glass.