Point has raised $115 million in Series C funding in a round led by WestCap. Existing investors also participated in the round including; Andreessen Horowitz, Ribbit Capital, Redwood Trust, Atalaya Capital Management, and DAG Ventures. New investors include Deer Park Road Management, The Palisades Group, and Alpaca VC.
Point is a Fintech that offers a home equity platform so homeowners can access equity financing in exchange for a fractional share of the value of the property. Point reports that it has experienced rapid growth, with Q1 2022 funding volume up more than 5x versus year prior.
In 2021, Point completed its first-ever securitization backed entirely by residential Home Equity Investment (HEI) agreements. The company also announced over $1 billion in new capital commitments from real estate and mortgage-backed securities (MBS) investors.
Eddie Lim, CEO and co-founder of Point.
“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 homebuyers build financial stability and achieve their financial dreams.”
Point said the new money will help it to scale its home equity platform further, bulletin out its plans to:
- Further invest in new products beyond its flagship HEI product
- Drive exceptional customer experience and efficiency by continuing to enhance its industry-leading technology platform
- Rapidly grow its ecosystem of customers, partners, and investors
- Expand beyond its current presence in 16 states and the District of Columbia to 28 total geographies over the next year
Laurence Tosi, founder and Managing Partner at WestCap explained that most Americans have much of their wealth tied up in their home:
“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.”
Point’s current offerings target both homeowners and home buyers while also allowing institutional investors to participate in the growth of the $25 trillion residential home equity market.
The flagship HEI product enables homeowners can unlock up to $500k with no monthly payments, no income requirements, and no need for perfect credit.
In exchange for this access, homeowners share a piece of their future home price appreciation with investors.
Alex Rampell, General Partner at Andreessen Horowitz, complimented the strength of the Point team:
“It’s clear that Point is building a home equity platform that will make homeownership more valuable for all existing and prospective homeowners,” said “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.”
