BOSTON, Dec. 11, 2019 (GLOBE NEWSWIRE) -- Hometap, which provides a smart, new loan alternative for tapping into home equity without taking on debt, today announced that it has secured $100 million in new financing. The capital raise includes ICONIQ Capital, LLC as well as Hometap's current investors General Catalyst, G20, Pillar and American Family Ventures, the venture arm of AmFam Insurance.
With this additional financing, Hometap plans to continue its nationwide expansion, with the goal of bringing its total reach to approximately 75 percent of U.S. homeowners. The company will also be expanding its platform capabilities and significantly growing its cross-functional team to continue to deliver a best in class homeowner experience.
“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,” said Jeffrey Glass, CEO of Hometap. “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.”
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 provides a smart new alternative to these solutions, enabling homeowners to access a percentage of their home’s current value in exchange for an agreed upon percentage of the future value of their 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. Hometap’s unique homeowner-first approach, coupled with its simple and transparent pricing model, has allowed the company to differentiate itself and achieve significant market share within the rapidly growing home equity investment category.
One homeowner who turned to Hometap while trying to find a way to fund home renovations and pay off credit card debt is Butch F. from Monroe, North Carolina. “My wife and I had to start putting home repairs, including a new roof and HVAC system, on our credit cards,” said Butch. “We knew we had to pay off the credit card debt and were worried that if we didn't get another home loan, we might have to sell our house. That’s when we started searching for alternatives and found Hometap. Given our financial situation, it was a no brainer - the process was easy, we received our cash in a few weeks and were able to pay off our credit card debt, while having enough cash left over to fix our driveway and yard, which has already helped increase the value of our home.”
In addition to helping homeowners unlock the equity in their homes to address financial needs or pursue future opportunities, Hometap is also helping to solve a significant asset allocation problem in the U.S. Homeowners can now use the wealth built up in their home to invest in other assets in order to diversify their portfolio and right size their debt. In addition, the company is providing its investors access to the U.S. residential real estate market, an asset class that was previously difficult to access.
“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,” said Nugi Jakobishvili, ICONIQ’s Chief Investment Officer. “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.”
About Hometap
Hometap is a smart new loan alternative for tapping into home equity without taking on debt. Homeowners receive debt-free cash by selling a percentage of the equity in their homes to Hometap. They can use the cash for anything, 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. Learn more at https://www.hometap.com/.
Media contact:
Rachel Keohan
1-617-399-0604
rkeohan@hometap.com
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