Hometap, which enables homeowners to tap into their home equity without taking out a loan, has raised $100m in funding.
Capital from the round will be used to increase its nationwide expansion with the aim of reaching 75% of US homeowners. Furthermore, Hometap will expand its platform capabilities and grow its cross-functional teams.
ICONIQ Capital, General Catalyst, G20, Pillar and American Family Ventures participated in the funding round.
Hometap recently conducted a Homeownership Study which found 73% of US homeowners do not want to take on more debt through traditional means.
The FinTech company offers homeowners an alternative financing option. Hometap takes a percentage of the house’s value, giving the owner access to funds without any debt or monthly repayments.
Founded in 2017, the FinTech typically offers a homeowner between 5% and 15% of their home’s current value.
Hometap CEO Jeffrey Glass said, “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.
“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. We’re 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.”
Hometap closed a $12m Series A round last year to support the expansion of its data science capabilities. Investors to the round included G20 Ventures, General Catalyst, American Family Ventures and Pillar.
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