Today, Splitero, a financial service company providing homeowners options to access their home equity, announced raising a $5.8 million seed round and securing more than $1 billion in financing, according to a press release shared with FinLedger.
The equity fundraise was led by Gemini Ventures and also included participation from Permit Ventures and Fiat Ventures. Splitero is launching to California at this time, but says it has plans to expand nationally.
Founded by two fintech veterans, CEO Michael Gifford and COO David Zvaifler, the company seeks to help consumers combat inflation and rising home expenses with their home equity through lump-sum cash transactions in exchange for a share of their home’s appreciation.
Gifford most recently served at Vice President of Sundae and was part of the early team at Kiavi; Zvaifler cofounded Pacific Pines Real Estate and previously acted as COO of Apollo Realty Investments.
“Too many American homeowners are underserved with products to access their home equity. Many face impossible tradeoffs when it comes to prioritizing retirement savings, children’s education, and paying off debt,” Gifford stated in the release.
“We started the company to help today’s homeowners by giving them the cash they need now without restrictive bank qualifications or disrupting their lives,” Gifford said.
Real estate prices (and home appreciation) have been on a tear over the past few years. But sooner or later all this good fortune will translate into higher assessments and tax increases.
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Splitero accomplishes this through Home Equity Investments (HEIs), which allow homeowners to use their property equity to gain liquid capital and keep their homes.
The company says it is perfectly positioned for the current market, with over $25.3 trillion currently sitting in U.S. home equity. It says that over 17 million residential properties have over 50% in home equity, and 31.9% of the 55.8 million mortgages homes in the U.S. have over 50% equity, highlighting this position.
“Splitero is serving a critical need in today’s housing market, allowing homeowners to leverage the value of their home without selling or moving,” stated Adam Pase, cofounder and general partner of Gemini Ventures, in the release.
“Splitero’s seasoned team of real estate experts has significantly positioned them to impact the residential financing market, and we are thrilled to support them in their launch,” Pase said.
In other recent proptech news, Maxwell and Snapdocs partnered to accelerate home loan digital closings. Blend Network also secured $156 million in debt funding for its Origination-as-a-Service initiative.