LiveOak Venture, General Capital, and Keystone Bank led the funding
Mortgage firm Homeward has announced that it has raised $25 million in initial funding to boost its acquisition and growth initiatives.
The company said that it would use the $4 million equity funding from LiveOak Venture Partners with the $21 million debt funding Genesis Capital and Keystone Bank to scale its initial product offering, The Homeward Way.
Homeward allows customers to make an all-cash offering to secure their next home even before they sell their current home. With this business model, homebuyers can tap their home equity and get credit from the firm.
In addition, owners receive a floor price guarantee on their home if they wouldn’t be able to sell it for its full market value. They can also stay in their existing home while renovating their new house.
“The current process of home buying is backwards,” said Tim Heyl, founder and chief executive officer of Homeward. “Buyers have to sell their existing home and then rush to find a new one. We remove this uncertainty by letting buyers use our cash to secure their next home first. Then they can take their time and sell their existing home for its full market value.”
“We partner with exceptional entrepreneurs who are looking to transform large established industries,” said Krishna Srinivasan, founding partner of LiveOak Venture Partners. “We recognized early on after meeting with Tim, given his incredible domain expertise and accomplishments and our experience as the first institutional investor in Opcity and Ojo Labs, that Homeward has real potential to disrupt the real estate market by empowering the consumer. Our team is excited to invest and support the Homeward team as they reshape the broken legacy process of buying and selling homes.”
