Hometap, a house financing platform, has closed its Series A round on $12m, with G20 Ventures leading the round.
Contributions to the round came from General Catalyst, American Family Ventures, and Pillar.
Founded in 2017, the company provides homeowners with a way to access equity that is locked in their home. Hometap makes investments of up to 20 per cent into a borrower home value in order to provide the owner with funds they need without having to acquire more debt through a home loan or second mortgage.
There are no monthly payments or debts, instead, when the homeowner sells their house, Hometap receives its share and an investor return. The platform lets accredited investors access an assets class with low correlation to the US stock market.
This capital round will be used to aid the building of the platform and its data science capabilities. Funds will also be used to bolster its homeowner education efforts.
Hometap CEO Jeffrey Glass said, “Many American homeowners are house rich and cash poor. Our mission is to help make homeownership less stressful and more accessible. For many, the ability to tap into a portion of the home value that has accumulated will be a welcome alternative to further borrowing or a complete sale of the home.”
This transaction is General Catalyst fifth within the FinTech sector this year. Earlier in the month, the firm took part in the $110m Series E of cryptocurrency payments and investment platform Circle, and the $145m Series D round of AI-powered analytics company ThoughtSpot.
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