Hometap closes on $60M to let people tap into their home equity without taking out a loan

Hometap, a startup that offers people a way to borrow against the equity in their homes without taking out loans, has raised $60 million in new funding.

American Family Ventures led the investment, which brings Hometap’s total operating capital raised since its 2017 inception to $95 million. New and existing backers, including Bain Capital, Iconiq Capital, LLC, G20 Ventures, Pillar and General Catalyst, also put money in the latest round.

As its name implies, Hometap offers homeowners a way to “tap” into their home equity by taking on an investor in their property.

That investor is essentially providing cash in exchange for a share of their home’s future value. When the home sells or the homeowner “settles” the investment, Boston-based Hometap is paid an agreed-upon percentage of the sale price or current appraised value.

This article originally appeared on TechCrunch. Read the full article here.