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Hometap, a Boston-based fintech that provides an alternative for tapping into home equity without taking on debt, has secured $100 million in new financing. The capital raise includes ICONIQ Capital LLC and Hometap’s current investors: General Catalyst, G20, Pillar, and American Family Ventures, the venture arm of AmFam Insurance.
With the additional financing, Hometap plans to continue expanding nationally, with a goal of reaching approximately 75 percent of U.S. homeowners. The company will also expand its platform capabilities and cross-functional team.
Jeffrey Glass, Hometap’s CEO, said in a statement that the company was pleased to have financial support from a diverse group of asset-backed and venture investors.
“We’ve been working diligently towards our mission of making homeownership less stressful and more accessible for as many U.S. homeowners as possible, and we’ve had tremendous success thus far,” Glass said. “But the fact remains that the vast majority of homeowners are currently feeling ‘house rich and cash poor,’ and there’s a lot more work to be done to make home equity investments an option that’s available to everyone.”
According to Hometap’s 2019 homeownership study, despite having a need for capital, 73 percent of U.S. homeowners don’t want to take on more debt through traditional financing options, such as home equity loans or HELOCS. Hometap’s alternative to these solutions enables homeowners to access a percentage of their home’s current value in exchange for an agreed upon percentage of the future value of the home. By taking an investment in their home, rather than incurring additional debt, homeowners are now able to tap into their home equity without the stress of monthly payments and interest.
“We are thrilled to be investing with Hometap. With a highly transparent, customer-first approach, they are providing a valuable solution to the challenges faced by many homeowners,” ICONIQ Chief Investment Officer Nugi Jakobishvili said in a statement. “As investors, it’s rare to find opportunities with the combination of an attractive asset profile, a gifted management team, and the potential to provide meaningful economic benefits to households across the country. Hometap’s deep bench of high-quality, high-integrity professionals has created an exceptional platform that helps align homeowners and investors. They are incredibly well-positioned to lead the growth we are witnessing in the market.”
