Hometap, a Boston, MA-based provider of a new loan alternative for tapping into home equity without taking on debt, raised $60m in new operating capital.
The round, which brings total operating capital raised to date by Hometap to $95m, was led by American Family Ventures along with new and existing investors including Bain Capital, ICONIQ Capital, LLC, G20 Ventures, Pillar, and General Catalyst.
The capital will be deployed to continue hiring talent across all functional areas, scaling a channel partner program, introducing additional alternative financing products and services to support homeowner needs, and expanding operations nationwide.
Led by CEO Jeffrey Glass, Hometap allows homeowners to receive debt-free cash in exchange for a share of their home’s future value. Homeowners can use the cash to meet a variety of needs from paying off credit-card debt to starting a business to buying a second home. When the home sells or the homeowner settles the investment, Hometap is paid out an agreed-upon percentage of the sale price or current appraised value.