Point, which enables homeowners to tap into some of their home equity using a model similar to a reverse mortgage, reports that it has raised $22 million in Series B equity funding as well as a platform capital commitment of $100 million which it will use to fund its ongoing expansion.
The company reports that it plans to make its products available in more than 30 states by the end of 2020, reaching over 70% of U.S. homeowners. What’s more, it plans to fund in excess of 1,000 homeowners in 2019.
The funding round was led by Prudential Financial and DAG Ventures, with participation from existing investors including Andreessen Horowitz, Ribbit Capital, and Bloomberg Beta, the company says in a release. New investors include Financial Venture Studio and Enterprise Community Partners.
Point also announced a platform capital commitment of $100 million from Kingsbridge Wealth Management. which brings total platform capital to over $265 million.
Kingsbridge also participated in the equity round.
“Point is seeing significant demand for its home equity investment solution,” says Eddie Lim, co-founder and CEO of Point, in a statement. “We are witnessing the emergence of a whole new class of financial solution that is aligned with homeowners, and investors are taking notice.”
Lim adds that 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.”
From its launch in mid-2015 to mid-2018, Point built up a portfolio of home equity investments that validated both the consumer need for this new product and the appetite that investors hold for this new asset class.
This proof of concept culminated with a $150 million platform capital investment from Atalaya Capital Management, announced in April 2018.
Since then the company has expanded its footprint and today serves customers in 13 states and the District of Columbia.
The company’s origination volume has grown more than 10 times, 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.
The company has recently begun to offer longer-term home equity investments to select homeowners, and investors and consumers have met this offering with enthusiasm.
“This type of initiative is only possible because we’ve built a proprietary technology platform which enables us to rapidly prototype and market-test new products based on the needs of homeowners,” Lim says. “Point’s emphasis on providing homeowners with an exceptional experience means we have to continue to build superior technology. Building great products that integrate finance and technology is what we do best.”