US-based home equity investment platform Hometap collected $100m in funding on Wednesday from investors including American Family Ventures, the corporate venturing arm of insurance provider American Family.
Multi-family office Iconiq Capital and venture capital firms General Catalyst, G20 Ventures and Pillar VC also took part in the round.
Founded in 2017, Hometap operates a service that enables owners to sell a percentage of their home equity to the company in return for cash, meaning they can forego loans or remortgaging their property.
Owners can settle the investment by paying Hometap back based on a pre-agreed percentage and current appraisal value, or by selling their property and passing on a certain percentage from the sale price to the company.
The capital will drive Hometap’s domestic expansion plans, which involve eventually reaching approximately 75% of homeowners throughout the US. It will also continue development of its platform and recruit additional staff.
Hometap CEO Jeffrey Glass said: “We are thrilled to have the financial support of such a diverse group of asset-backed and venture investors who can further propel Hometap towards helping millions of Americans free up liquidity from their homes without taking on more debt.”
American Family Ventures previously contributed to a $12m series A round for Hometap in April 2018 that was led by G20 Ventures and backed by existing investors Pillar and General Catalyst.
