Hometap, which provides a loan alternative to homeowners for tapping into home equity without taking on debt, has raised $60m in a funding round led by American Family Ventures.
Bain Capital, ICONIQ Capital, LLC, G20 Ventures, Pillar and General Catalyst also participated in the round. This funding brings total operating capital raised to date by Hometap to $95m.
The capital will be used to continue hiring talent across all areas, Hometap said, as well as scaling a robust channel partner programme, introducing additional alternative financing products and services to support homeowner needs, and expanding operations nationwide.
Hometap, which describes itself as an investor, not a lender, 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.
Dan Reed, managing director at American Family Ventures, said, “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.”
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