Predict your next investment

Point Digital Finance company logo
Corporation
INTERNET | Internet Software & Services / Accounting & Finance
point.com

See what CB Insights has to offer


Founded Year

2015

Stage

Loan | Alive

Total Raised

$32.15M

Last Raised

$1.5M | 1 yr ago

About Point Digital Finance

Point provides an alternative to traditional home equity loans and home equity lines of credit. Point buys into a fraction of a consumer's property, paying today for a share of the home's future appreciation. There are no monthly payments, no interest rate, and consumers can buy Point out or sell the home at any time.

Point Digital Finance Headquarter Location

444 High St. Fl 4

Palo Alto, California, 94301,

United States

888-764-6823

Latest Point Digital Finance News

Hedge fund invests $150M in home equity startup

Apr 18, 2018

A startup that buys equity in American homes just got its largest financial commitment to date through a $150 million boost from a New York hedge fund, amid rising home prices that are fueling demand for home-equity products. Point Digital Finance Inc. lends capital to people and receives partial ownership in their homes in return. The three-year-old startup targets customers who are seeking an alternative to traditional loans. Atalaya Capital Management, which has about $3 billion in assets under management, will buy as much as $150 million of home-equity investment instruments from Point over the course of three years, the Palo Alto, California-based startup said. “It’s a product that’s good for the consumer and meets an unmet need, especially with banks largely pulled out of the home-equity loan business,” said Raymond Chan, a partner at Atalaya Capital Management. “There are literally billions of dollars tied up into equity of people’s homes they can’t tap, and this gives them an alternative way to tap that.” Point said it has raised more than $15 million in venture capital, including venture debt financing. Co-founders include Chief Executive Officer Eddie Lim, Eoin Matthews and Andreessen Horowitz partner Alex Rampell, who is a board member. Backers include Andreessen Horowitz, former Citigroup Inc. CEO Vikram Pandit and former Airbnb Inc. Chief Financial Officer Laurence Tosi. Bloomberg Beta, the venture capital arm of Bloomberg LP, the parent company of Bloomberg News, also is an investor. In the years before the real estate crash, people used cheap financing to buy homes they sometimes couldn’t afford, then borrowed against their equity as property prices rose. Banks have since tightened credit standards for home-equity lines of credit, which are repaid with interest. Today, rising home values are again fueling demand for home-equity products. Influenced by the venture capital model for startup investing, Point takes a stake in homes they expect to appreciate in value. Customers don’t have to pay back Point for as long as a decade, until they sell, refinance or buy out the stake. The annual effective interest rate is capped at about 15 percent, which is comparable to a credit card. Point said it has invested in about 100 homes across California, Washington, Oregon, Massachusetts and Colorado, with plans to expand in additional areas this year. The homes that Point has invested in are, on average, valued at just more than $1 million, and its stake is, on average, $87,000. The company makes money from a 3 percent processing fee from customers, a servicing fee from the investors, and a slice of profits if the home gains in value when the homeowner sells or buys back. Point shares in the loss if the home depreciates enough in value. Like this article? Gain access to all of our great content with a month-to-month subscription. SPECIAL:  Start your subscription  with our low intro rate of just $14.95. Share this:

Predict your next investment

The CB Insights tech market intelligence platform analyzes millions of data points on venture capital, startups, patents , partnerships and news mentions to help you see tomorrow's opportunities, today.

Research containing Point Digital Finance

Get data-driven expert analysis from the CB Insights Intelligence Unit.

CB Insights Intelligence Analysts have mentioned Point Digital Finance in 1 CB Insights research brief, most recently on Sep 3, 2020.

Expert Collections containing Point Digital Finance

Expert Collections are analyst-curated lists that highlight the companies you need to know in the most important technology spaces.

Point Digital Finance is included in 6 Expert Collections, including Real Estate Tech.

R

Real Estate Tech

2,175 items

Excludes co working/co living companies

S

Smart Money VCs (2017-2019)

6,297 items

We crunched the data to identify the 24 VC firms with the best combination of portfolio valuations and investment outcomes.

F

Fintech 250

248 items

C

Capital Markets Tech

1,280 items

Companies in the capital markets tech space are providing software and/or services for investment banks, hedge funds, investment managers, and so forth. Companies included use technology across the front, middle, and back-offices and streamline all pre- and post-trade operations.

D

Digital Lending

1,018 items

This collection contains companies that provide alternative means for obtaining a loan for personal or business use and companies that provide software to lenders for the application, underwriting, funding or loan collection process.

E

Enterprise SaaS

2,452 items

Software-as-a-service (SaaS) – internet based software offered as a subscription – continues to become the de facto standard for software distribution and consumption. Enterprise SaaS continues to show particular promise, emerging as one of the most well-funded categories. Startu

Point Digital Finance Web Traffic

Rank
Page Views per User (PVPU)
Page Views per Million (PVPM)
Reach per Million (RPM)
CBI Logo

Point Digital Finance Rank

CB Insights uses Cookies

CBI websites generally use certain cookies to enable better interactions with our sites and services. Use of these cookies, which may be stored on your device, permits us to improve and customize your experience. You can read more about your cookie choices at our privacy policy here. By continuing to use this site you are consenting to these choices.