Andreessen Horowitz is the lead backer of Point, a fintech that allows homeowners to tap into their home equity wealth without taking on new debt. The Series A round is worth $8.4 million. Ribbit Capital, Bloomberg Beta, and angels Vikram Pandit, Airbnb’s Laurence Tosi, LendingHome founder and CEO Matt Humphrey and Invitation Home cofounder Brad Greiwe also participated.
An additional $7 million of venture debt financing brings total funding to $15.4 million. The funds are earmarked for expansion, technology and marketing.
Andreessen Horowitz general partner Alex Rampell assumes a seat on Point’s board.
Point customers sell a fraction of their home to investors in exchange for a lump sum of capital between $40,000-$250,000. No interest rates or monthly payments are charged. Borrowers pay the amount back within ten years after selling or refinancing.
“Point is fundamentally transforming the home equity landscape,” cofounder and CEO Eddie Lim said. “Homeowners can now access their home equity wealth without a loan, monthly payments (or) a fixed interest rate. This is a truly revolutionary product that aligns investors and homeowners in a way we haven’t seen before.
“There’s $18 trillion of US residential real estate equity wealth that is locked up. We want to put that to productive use.”