San Francisco-based fintech startup Noah, announced the closure of a $150 million Series B funding round on Wednesday. Noah, formerly known as Patch Homes, was founded in 2016.
Noah helps homeowners tap into their home equity without selling or refinancing their home. The company plans on using the latest round of financing to help fuel its equity sharing program. The program offers homeowners debt-free financing upfront in exchange for a share of the percentage of their home’s future appreciation or depreciation. Homeowners then have the freedom to use the money they acquire from the program however they choose.
“Amid this state of financial uncertainty, we’re encouraged by our latest capital investment as it strengthens our ability to continue to partner with homeowners and help them access immediate funds,” Sahil Gupta, founder of Noah, said in a statement.
Gupta hopes that Noah’s latest program can offer respite to homeowners facing unemployment or a reduced income due to the economic fallout of the COVID-19 pandemic.
“We’ve had homeowners come to us when they had nowhere else to turn and it’s important that we continue to develop long-term partnerships, even in times of economic uncertainty,” Gupta said.
Homeowners can pre-qualify for financing after entering their home address, debt balance and credit score on the company website. Once an application is submitted, house appraisal is complete and documents are signed, funds are disbursed within a “few days,” according to the company.
“We see our homeowner partners as more than just a credit score,” Rahul Parulekar, the company’s chief investment officer, said in a statement. “Our model leverages 80 billion data points across more than 60 different variables in order to obtain a holistic understanding of each investment.”
The company has raised a total of $156 million in venture capital to date, according to Crunchbase. Gupta told Crunchbase News that the latest round of financing was supported by unnamed institutional investors, including pension funds. The round was led by Union Square Ventures.
“Noah is dedicated to being a long-term partner to homeowners by making our products more accessible during this time so we can put even more money in their pockets,” Gupta said. “Our goal is to empower homeowners so they can meet their current financial demands while navigating a better financial future.”
Noah plans on expanding its reach in East Coast markets later this year.
