Hometap, the US-based developer of a home equity investment platform, has raised $12m in a series A round backed by American Family Ventures, a subsidiary of insurer American Family.
G20 Ventures led the round, which also featured fellow venture capital firms Pillar and General Catalyst, the latter described as an existing investor. The funding was raised by Hometap last month but only disclosed last week.
Founded in 2017, Hometap invests up to 20% in the equity of a home, allowing homeowners to access finance without using debt instruments such as remortgages or home equity loans. It will use the funds to enhance its platform’s data science capabilities.
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.
“Having the financial support of this group of investors will help us execute on our vision of creating a world where homeowners have more choice, more opportunity and more control over the equity in their home.”