Loading, Please Wait...
PALO ALTO, Calif., March 20, 2019 (GLOBE NEWSWIRE) -- Point, the first financial technology platform that allows homeowners to unlock their home equity wealth without taking on new debt, announced today that it has secured $122 million in new funding. The company added $22 million in Series B equity funding led by Prudential Financial (NYSE:PRU) and DAG Ventures, with participation from existing investors including Andreessen Horowitz, Ribbit Capital, and Bloomberg Beta. New investors include Financial Venture Studio and Enterprise Community Partners. More information is available at https://resources.point.com/point-announcement-march20-2019/ .
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 (HEI) solution. We are witnessing the emergence of a whole new class of financial solution that is aligned with homeowners, and investors are taking notice,” said Eddie Lim, co-founder and CEO of Point. “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.”
“Kingsbridge is excited to be a capital partner with Point in providing innovative non-debt financing solutions for homeowners,” said David Dunn, Chief Investment Officer of Kingsbridge. “Homeowners with substantial home equity now have access to liquidity, without the burdens that come with debt financing.”
Plans for Scaling and Growth
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 10x 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. This newest round of investment will support a considerable expansion for Point, making its products available in over 30 states by the end of 2020, and reaching over 70 percent of U.S. homeowners. The company expects to fund in excess of 1,000 homeowners in 2019.
New Products Attracting More Homeowners and Investors
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,” said Lim. “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.” The company will expand access to its 30-year product offerings in 2019, and expects this to act as a further driver of growth.
Among Point’s newest investors are Prudential, Financial Venture Studio, and Enterprise Community Partners, who each share a focus on housing affordability and solutions that benefit homeowners. In working with these investors, Point expects to create innovative solutions for first-time homebuyers and those facing challenging real estate markets.
“We know that many Americans are overburdened by debt, and too many households face impossible tradeoffs when it comes to prioritizing long-term investments like saving for retirement, paying for a child’s education and buying a home,” said Miljana Vujosevic, Vice President of Impact Investments for Prudential. “Our investment in Point is one more way we’re committing to helping consumers meet their goals and achieve lasting financial security.”
“We back entrepreneurs who are bringing fresh solutions to stale markets, and Point is a great example of a company that’s doing this really well,” said Ryan Falvey, Managing Partner of Financial Venture Studio. “We are thrilled to be able to continue to support this team and their vision for a better home equity product.”
Point is the first financial technology platform that allows homeowners to unlock their home equity wealth without taking on new debt. To date, Point has raised $33M in equity and $265M in platform capital for home equity investments. Investors include: Andreessen Horowitz, Prudential Financial, Ribbit Capital, DAG Ventures, Greylock, Bloomberg Beta, Enterprise Community Partners, Financial Venture Studio, Laurence Tosi (former CFO of Airbnb and Blackstone), Brad Greiwe (Co-Founder & Managing Partner of Fifth Wall), Vikram Pandit (former CEO of Citigroup), and Matt Humphrey (CEO of LendingHome). Launched in 2015, Point now operates in cities across California, Colorado, Florida, Georgia, Illinois, Maryland, Massachusetts, New Jersey, New York, Oregon, Pennsylvania, Virginia, Washington and in the District of Columbia. The company is headquartered in Palo Alto, CA. For more information, visit https://point.com.
Media Contact: Shannon Austin Financial Venture Studio for Point 703-338-8813 firstname.lastname@example.org