Homeownership investment startup Hometap announced this week that it secured $100 million in new financing. According to the company, this funding will be put toward national expansion, as the startup aims to reach around 75% of U.S. homeowners.
The latest capital raise includes investor ICONIQ Capital as well as Hometap’s current investors General Catalyst, G20, Pillar and American Family Ventures, the venture arm of AmFam Insurance.
Hometap has been progressing toward its lofty goal of reaching 75% of U.S. homeowners as it expanded into six states this summer.
“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,” CEO of Hometap Jeffrey Glass said. “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.”
The company, which launched less than two years ago in Massachusetts, now also extends to California, Florida, New York, North Carolina and Virginia. The company estimates its services are accessible to 20% of U.S. homeowners.
In its current markets, Hometap invests in homes alongside homeowners, offering them access to up to 20% of their equity in cash for a 10-year term in exchange for the chance to share in their home’s appreciation. If the home’s value declines, Hometap shares in the loss.
According to Hometap, the company also provides its investors access to the U.S. residential real estate market.
“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,” Jakobishvili added. “They are incredibly well-positioned to lead the growth we are witnessing in the market.”