EquiFi Corporation, a San Jose, CA-based developer of a home equity-based financing solution, closed a $2.5m convertible debt funding round.
The round included participation from a private investment firm and from the founders of Intero Real Estate.
Led by David Shapiro, founder and chief executive officer, EquiFi develops the Equity Funding Instrument, a home equity-based financing solution offering:
– homebuyers the ability to benefit from an equity co-investment which can be used to make a larger down payment, and
– existing homeowners the ability to access to a portion of their locked up home equity without incurring debt.
EquiFi will license the EFI to “origination partners” – banks, mortgage lenders, credit unions, corporations, and public organizations – which will market the EFI directly to new and existing homeowners.
This convertible funding round is structured to provide bridge capital as the company achieves a series of early-stage operational milestones, with the notes intended to convert to a follow-on Series A preferred stock equity round in the near term.
EquiFi is a C Corporation with a Public Benefit Corporation designation and is committed to fairness and transparency across its entire eco-system.