Splitero Funding Inc., the financial technology company that provides homeowners options to access their home equity, recently announced that it has secured an $11.7 million Series A funding round.
Fiat Ventures led the round, with additional participation from Gemini Ventures, Joint Effects, PBJ Capital, Permit Ventures, Dream Ventures, Goodwater Capital, Spark Growth Ventures, and Oyster Fund, the company said.
In addition to the funding, Splitero announced it is also expanding to serve homeowners in Oregon and Utah.
“I am thrilled to announce our Series A. The completion of our funding round, in the current economic environment, is a testament to our team's hard work and tremendous growth this year," said Michael Gifford, Splitero co-founder & CEO. "This funding supports our mission to transform how homeowners access their equity. We are grateful for the support of our investors."
Splitero provides homeowners a cash lump sum in exchange for a share of their home’s appreciation. Home Equity Investments (HEIs) allow homeowners to use their home equity without income or minimum credit score requirements and no monthly payments. Splitero’s approach allows it to provide long-term support and services, significantly decreasing homeowners' costs, the company said.
U.S homeowners have over $27.8 trillion in equity, Splitero said, including over 110 million residential housing units with over 50% in home equity. Yet, homeowners continue to be underserved with traditional financial products to access their home equity, it said.
As existing home sales continue to fall and climbing interest rates trap many homeowners with low-priced mortgages, Splitero said it is uniquely positioned to offer homeowners a better solution.
“Homeowners' financial needs are constantly evolving, creating a demand for unique and flexible solutions that support them in reaching their goals and achieving financial wellness,” said Alex Harris, general partner of Fiat Ventures. “Splitero is solving that problem and serving a critical need in today’s housing market, allowing homeowners to leverage the value of their home without selling or moving. We are elated to partner with them to advance their transformative approach to more markets so they can help more homeowners across the U.S.”
This financing builds on Splitero’s significant growth in 2022. In addition to adding Oregon and Utah, it also operates in California and Colorado, and Washington, with plans to expand into additional states this year. Since launching in August 2021, Splitero has secured more than $1 billion in financing to help homeowners access their equity without new debt or monthly payments.