Real estate technology platform Point has received an investment from Atalaya Capital Management.
Atalaya has agreed to purchase $150m of Point’s structured home equity investment instruments.
Launched in 2015, Point helps homeowners to access their home equity wealth without taking new debt, while also providing investors with a new asset class. The platform works by a homeowner selling fractions of the equity in their homes to investors.
After an applicant is approved they receive an offer between 5 and 10 per cent of the house’s value. If a homeowner sells their house within the term time then Point is paid back through the escrow, or the borrower can buy Point’s stake at any point.
The company invests in homes across California, Washington, Oregon, Massachusetts and Colorado, with plans to hit additional markets over the coming year.
Point co-founder and CEO Eddie Lim said, “The partnership with Atalaya allows us to bring our product to many more homeowners and otherwise enhances our operating platform. With Atalaya’s investment, we will continue improving our marketing infrastructure, underwriting automation, data assets and other tools to continue to drive value for homeowners and investors in the structured home equity arena.”
The company previously raised a $8.4m in a funding round led by Adreessen Horowitz, with participation form Ribbit Capital, Bloomberg Beta, Vikram Pandit and Laurence Tosi.
Last year, Atalaya Capital Management made a £15m investment into UK business lender Boost Capital.
In the PropTech sector last year, property investment platforms was the second biggest sub-sector to receive funding, according to data by FinTech Global.
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