Homeownership investment company Point just landed a major cash infusion that will fund its plans to help more Americans access their home equity without incurring debt.
The Silicon Valley company raised $100 million in platform capital from Kingsbridge Wealth Management – bringing its total platform capital to $265 million.
It also secured $22 million in a Series B funding round led by Prudential Financial and DAG Ventures, with participation from existing investors that include Andreessen Horowitz, Ribbit Capital and Bloomberg Beta.
Point said its new investors, including Prudential, are interested in the company’s solution the lack of affordable housing, and that it plans to work with these investors to create innovative solutions for first-time homebuyers and those living in challenging markets.
“We know that many Americans are overburdened by debt,” said Prudential’s VP of Impact Investments Miljana Vujosevic. “Our investment in Point is one more way we’re committing to helping consumers meet their goals and achieve lasting financial security.”
Point is one of a number of companies offering homeowners debt-free access to their equity by connecting them with investors who want to purchase a portion of their home’s equity.
Point’s offer is typically between 5% and 20% of the home’s appraised value, and homeowners can sell or pay back the investment at any time. If the home depreciates, Point shoulders the loss alongside the homeowner.
The company markets its product as an alternative to home equity loans and cash-out refinances.
Point Co-Founder and CEO Eddie Lim said the company is seeing real interest from consumers looking for an alternative way to get their hands on their equity.
“Point is seeing significant demand for its home equity investment solution,” said Lim. “We are witnessing the emergence of a whole new class of financial solution that is aligned with homeowners, and investors are taking notice.”
Point, which launched in 2015, secured a $150 million platform capital investment from Atalaya Capital Management in 2018, and since expanded its reach to 13 states and Washington, D.C.
The company said the new capital will be used to fund its expansion into more than 30 states by the end of 2020 and aid in its goal to fund more than 1,000 homeowners in the coming year.
Published at Wed, 20 Mar 2019 05:00:00 +0000