Home equity fintech Unlock Technologies has landed a Series B funding round that includes a $30 million investment by D2 Asset Management. D2 also pledged a $250 million capital commitment to Unlock to support originations.
Also participating in the Series B round were Saluda Grade, Second Century Ventures and REACH, the venture and tech subsidiary of the National Association of Realtors (NAR).
Unlock, a provider of home equity agreement (HEA) contracts, claims it has experienced 98% year-over-year growth in the number of homeowners who chose its product. The company said this reflects the “macro need” for versatile financial products among existing homeowners.
“This funding validates our vision of democratizing home equity and empowering homeowners to achieve their financial goals,” Unlock CEO Jim Riccitelli said in a prepared statement. “With this capital, we will accelerate our growth and continue to develop innovative solutions that unlock the true value of homeownership.”
The funding will be used to expand Unlock’s growth strategy, with additional product offerings for specific homeowner segments — such as prospective buyers, retirees, and those who don’t currently qualify for traditional mortgages or home equity lines of credit (HELOCs). Funds will also be allocated toward its technology platform and for marketing initiatives in new markets.
Unlock’s HEA offers homeowners a way to access the equity in their home without a traditional installment loan. Homeowners can receive a lump sum of cash in exchange for a share of their home’s future value. There are no monthly payments, interest rates or the need to refinance.
“The home equity agreement has the potential to revolutionize how homeowners can tap into their home equity, and we are excited to make a significant commitment to support the Unlock team as they expand their business,” Luke Doramus, co-founder and managing partner of D2 Asset Management, said in a statement.
Unlock is currently available in 14 states, with immediate plans to expand its reach and serve more homeowners nationwide.
