The company plans to use its new capital toward hiring, scaling its channel program/partnerships, expanding operations nationwide and introducing additional alternative financing products and services.Īs for its revenue model, Hometap charges homeowners a one-time fee that gets deducted out of their proceeds, but most of its revenue comes from the investors putting up their capital to invest in the properties. Hometap currently invests in 15 states (including Massachusetts, New York, California, Virginia, Florida and North Carolina). Glass emphasizes that the company is an investor, not a lender - and one that is offering a “smart loan alternative.” It also uses proprietary financial models and forecasting tools as part of its investment process. The startup says its software uses automated technology to make the process as simple as possible for a homeowner. “We’ve grown 14 consecutive quarters quarter-over-quarter, even right through the pandemic.” “We expect to more than double, or perhaps triple again, next year as well,” he told TechCrunch. He said the company “more than tripled” its revenue growth this calendar year and more than doubled its employee headcount to 140 in the same time frame. While he declined to reveal revenue specifics, Glas s said that in the first 10 months of this year, Hometap made four times as many home equity investments as it had during the same time period in 2020. “There are so many people that are house rich and cash poor - and might have a capital need such as renovating a house or paying for college where, historically their only alternative is to further borrow on, or sell their house.” “We started this company not only because we thought it was a good business, but because we wanted to be part of something with a social mission,” CEO Jeffrey Glass said. When the home sells or the homeowner “settles” the investment, Boston-based Hometap is paid an agreed-upon percentage of the sale price or current appraised value. That investor is essentially providing cash in exchange for a share of their home’s future value. New and existing backers, including Bain Capital, Iconiq Capital, LLC, G20 Ventures, Pillar and General Catalyst, also put money in the latest round.Īs its name implies, Hometap offers homeowners a way to “tap” into their home equity by taking on an investor in their property. Hometap, a startup that offers people a way to borrow against the equity in their homes without taking out loans, has raised $60 million in new funding.Īmerican Family Ventures led the investment, which brings Hometap’s total operating capital raised since its 2017 inception to $95 million.
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