Canadian FinTech Fraction Technologies has closed a CAN$289m ($226.6m) funding round.
The round consisted of a combination of equity and debt financing from investors like Impression Ventures, Primetime Partners, Global Founders Capital, and Panache Ventures, among others.
Fraction will use the cash injection to officially launch across the nation, expand its team, build out its platform and to prepare for its launch in the US.
Fraction offers a digital platform that provides socially conscious financial solutions. It claims that its flagship product, the Fraction Appreciation Mortgage is the first of its kind in North America.
The Fraction Appreciation Mortgage enables homeowners to access the existing value locked in their homes to increase their income or cover unexpected expenses.
“Fraction aligns its interests with the homeowner,” said Hayden James, CEO and co-founder of Fraction. “Upon sale of the home, if the home value appreciates, Fraction shares in the upside, but if the home value decreases, there is a protected downside, which helps homeowners preserve their home equity.
“With over $20trn locked in home equity in the US and Canada, no homeowner should be strapped for cash, struggling to pay for their child’s education, unable to pay bills during retirement or unable to help a loved one who has lost their job due to the pandemic. It is a common story to own your home but be barely able to afford anything else.”
Christian Lassonde, managing partner and founder at Impression Ventures, added, “The Fraction team impressed us with their breadth and depth of experience in lending.
“Driven by a strong sense of purpose that aligns with ours, Fraction makes accessing home equity easy regardless of income, age or profession, in a fair and transparent manner, strengthening an individual’s financial position. Homeowners can now better situate themselves in retirement, or use the funds to support their next generation, without having to leave their home or put it at risk.”
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