Fintech Point targets "house rich" homeowners with $115M fundraise
Point, a home equity-for-cash company, said it raised $115 million in Series C funding at an undisclosed valuation.
Why it matters: Point targets those who are rich in real estate but poor in cash at a time when the typical home value is up 20.6% to $337,560 as of March 2022.
How it works: Points connects homeowners with investors. The homeowner receives cash from the investor, while the investor gets effectively an equity stake in the home.
- The homeowner has 30 years to buy back the equity. If the house is sold, the investor gets a cut of the proceeds.
- Point caps the upside for the investor, and the downside for the homeowner, should the value surge.
What we're watching: What a regulatory framework around this space could look like.
- "Point has and will continue to proactively reach out to various regulators to introduce this burgeoning asset class and discuss a sound regulatory framework for it," CEO Eddie Lim tells Axios.
Looking forward: Point is now in 16 states as well as Washington, D.C. It is planning to go into 11 more regions this year.
Of note: WestCap led the round, joined by a16z, Ribbit Capital and others.