Alternative lender Hometap raises $60m funding
Hometap, a Boston-based alternative lender, has raised $60 million of new operating capital 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.
Hometap raises $60m
This brings the total funds raised by Hometap since its inception in 2017 to $95 million. It will be used for hiring more staff, growing its partner programme, and expanding its product range.
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.
Hometap says that in 2021 it has made four times as many home equity investments as it had during the same time period in 2020, and more than doubled its employee headcount.
