Point raises $15.4 million in total funding, led by Andreessen Horowitz, to help homeowners unlock home equity wealth without borrowing
Palo Alto, Calif, Oct. 27, 2016 – Point, the first financial technology platform that allows homeowners to unlock their equity without taking on new debt, announced today that it has raised $8.4 million in Series A funding led by Andreessen Horowitz, which also led the company’s seed round in 2015 — bringing the total funding to $15.4 million, including venture debt financing. Alex Rampell, general partner at Andreessen Horowitz, has taken a board seat at Point. Andreessen Horowitz was joined by the company’s earlier backers, Ribbit Capital and Bloomberg Beta. Individual angel investors include Orogen Group CEO Vikram S. Pandit, Airbnb CFO Laurence Tosi, LendingHome founder/CEO Matt Humphrey, and Invitation Home’s co-founder Brad Greiwe.
"Point is fundamentally transforming the home equity financing landscape," said Eddie Lim, Point's CEO and co-founder. "Homeowners can now access their home equity without a loan, without monthly payments, and without a fixed interest rate. This is a truly revolutionary product that aligns the investors and homeowners in a way we haven't seen before. There's $18 trillion of US residential real estate equity wealth that's locked up. We want to put that wealth to productive use," he added.
Point reached several key milestones, including building a proprietary pricing engine that unifies property and homeowner risks, investing in over 50 properties across California, and bringing investor capital to its platform. For the first time, investors can now buy fractional interests in owner-occupied residential real estate through a digital platform, giving them access to a new asset class. Platform investors include Tosi, the former CFO of Blackstone.
Said Tosi, "Point provides homeowners with a solution to create liquidity through an aligned investment that will provide more options for safely managing their wealth and investing in their future. For investors, Point offers above market, risk adjusted returns from a diverse and stable set of assets. In short, the platform is a unique win-win for both homeowners and investors."
Point’s customers sell a fraction of their homes to investors in exchange for a lump sum of capital (between $40K – $250K) with no interest rates or monthly payments. They pay the lump sum back within ten years after selling or refinancing their home. Most homeowners use the capital to diversify their wealth, invest in their businesses, renovate their homes, or pay off debts. When a home appreciates in value, both the homeowner and investor do well.
“Point has built a great team going after a huge market with an innovative solution that solves a real need for their customers. That checks all the important boxes for us. The progress since the company’s founding has been exceptional and has surpassed our expectations,” said Rampell from Andreessen Horowitz.
The funding will enable the company to expand its geographical footprint, continue technology innovation and bolster marketing efforts.
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Point bolsters executive team with key financial industry veterans
Palo Alto, Calif, Oct. 27, 2016 – Point, the first financial technology platform that allows homeowners to sell a fraction of their homes, announced today the addition of two key executive hires. Ryan Randall, CFA, CAIA joins the company as Head of Capital Markets, and Matt Brady joins as Legal, Regulatory and Compliance Counsel. On the heels of Point’s successful Series A round, these appointments strengthen Point’s senior leadership team and further support the company’s next phase of growth.
Point provides homeowners with a brand new finance solution, and for the first time, investors can buy fractional interests in owner-occupied residential real estate through a digital platform. Randall will oversee the investor side of the business, introducing institutional and accredited investors to direct participation in the largest asset class in the world. Brady will oversee the company’s legal and regulatory function, steering the rollout of Point’s solution to new states.
“We are thrilled to have both Ryan Randall and Matt Brady bring their collective tech and financial industry expertise to Point,” said Eddie Lim, co-founder and Point’s CEO. “They will play a critical role moving forward as Point meets the national demand for a much needed alternative to debt-driven, traditional financing options.”
Randall joins Point with more than 20 years of experience in the financial services industry. Most recently, he served as CFO at Upstart, a fintech lending platform. He established the company’s capital markets function and helped attract $800M of loan capital within 12 months of launching its loan product. Previously, Randall was an investment officer at the $6B Fairfax County Retirement Systems and spent nine years with various Bay Area-based hedge funds, most recently with Passport Capital in San Francisco.
Brady is a recognized expert in consumer finance law and on federal and state financial regulations impacting fintech companies. Brady joins Point, having held senior roles at SolarCity, practiced law at Reed Smith, and served as a Judicial Law Clerk to the Honorable Bernard Zimmerman, former federal magistrate judge of the Northern District of California. He has litigated financial services extensively in the appellate courts and has been instrumental in developing innovative approaches to complex consumer finance instruments.