Hometap, which provides a smart, new loan alternative for tapping into home equity without taking on debt, today announced it has raised $60 million of new operating capital in a funding round led by American Family Ventures along with new and existing investors including Bain Capital, ICONIQ Capital, LLC, G20 Ventures, Pillar, and General Catalyst. The latest funding round brings total operating capital raised to date by Hometap to $95 million.
The operating capital will be deployed to continue hiring top talent across all functional areas, scaling a robust channel partner program, introducing additional alternative financing products and services to support homeowner needs, and expanding operations nationwide.
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.
“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,” said Dan Reed, Managing Director at American Family Ventures. “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.”
From January 1–October 31, 2021, Hometap 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.
“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,” said Hometap CEO Jeffrey Glass. “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.”