Point, a Fintech targeting home equity services, has closed on a Series B funding round led by Prudential Financial (NYSE:PRU) and DAG Ventures, with participation from existing investors including Andreessen Horowitz, Ribbit Capital, and Bloomberg Beta. New investors included Financial Venture Studio and Enterprise Community Partners.
Simultaneously, Point announced the commitment of $100 million from Kingsbridge Wealth Management, which brings total platform capital to over $265 million. Kingsbridge also participated in the equity round.
“We are witnessing the emergence of a whole new class of financial solution that is aligned with homeowners, and investors are taking notice. 2019 is proving to be a year of exponential growth for the company, and we expect that growth to continue as home equity investments open up critical liquidity for a lot more homeowners.”
Since platform launch in 2015, Point reports that it has built up a portfolio of home equity investments that validated both the consumer need and appetite that investors hold for this new asset class. The company has expanded its footprint and today serves customers in 13 states and the District of Columbia.
Point says their origination volume has grown more than 10x compared with the same period 12 months prior as homeowners look to Point for alternatives to traditional home equity loans, HELOCs, and cash-out refinances.
Point has recently begun to offer longer-term home equity investments to select homeowners. The company states that investors and consumers have met this offering with enthusiasm. The company will expand access to its 30-year product offerings in 2019 and expects this to act as a further driver of growth. Point expects to create innovative solutions for first-time homebuyers and those facing challenging real estate markets.
The new funding will provide the capital necessary to expand into 30 states by the end of 2020.