- Point recently announced it raised $115 million in Series C funding. These are the details.
Point – a fintech company and home equity platform that provides homeowners access to equity financing in exchange for a fractional share of the future value of their homes – recently announced it has secured $115 million in additional funding to accelerate company growth. Point’s Series C fundraise was led by WestCap with participation from other existing investors Andreessen Horowitz, Ribbit Capital, Redwood Trust, Atalaya Capital Management, and DAG Ventures. And new investors include Deer Park Road Management, The Palisades Group, and Alpaca VC.
Point has been seeing rapid growth with Q1 2022 funding volume up more than 5x YoY. And last year, Point completed the first-ever securitization backed entirely by residential Home Equity Investment (HEI) agreements and also announced over $1B in new capital commitments from leading real estate and mortgage-backed securities (MBS) investors.
The $115 million funding allows Point to scale its home equity platform while extending its execution and distribution advantages. And the company plans to use the additional capital to:
1.) Further invest in new products beyond its flagship HEI product
2.) Drive better customer experience and efficiency by continuing to enhance its industry-leading technology platform
3.) Rapidly grow its ecosystem of customers, partners, and investors
4.) Expand beyond its current presence in 16 states and the District of Columbia to 28 total geographies over the next year
Point’s suite of home equity products empowers both homeowners and homebuyers to achieve their financial goals while also allowing institutional investors to share in the growth of the $25 trillion residential home equity market.
Using the flagship HEI product, homeowners can unlock up to $500k with no monthly payments, no income requirements, and no need for perfect credit. And in exchange for this access, homeowners share a piece of their future home price appreciation with investors. Alignment is the core of Point’s business model — Point and their institutional investor partners do well when the homeowner does well.
KEY QUOTES:
“We’ve built strong momentum at Point and we welcome this vote of confidence from premier equity investors in our continued success. We expect this additional capital to accelerate our growth as we help cash-constrained homeowners and home buyers build financial stability and achieve their financial dreams.”
– Eddie Lim, CEO and Co-Founder of Point
“Most Americans have the majority of their wealth tied up in their home, limiting their ability to cover unforeseen expenses or diversify wealth. Point has created an industry-first solution that empowers homeowners to utilize their home equity to eliminate debt, overcome periods of financial hardship and unlock new opportunities for wealth without taking the risk of traditional term loans.”
– Laurence Tosi, Founder and Managing Partner at WestCap
“The strength and depth of the team that Eddie Lim has brought together at Point and its innovative approach to providing financing to homeowners has been apparent. It’s clear that Point is building a home equity platform that will make homeownership more valuable for all existing and prospective homeowners. After leading both their Seed round and Series A round, and investing in their Series B, we’re excited to continue to invest in Point and help Eddie and the team build an industry-defining business.”
– Alex Rampell, General Partner at Andreessen Horowitz
