Venture Capital: Home Equity Financier Noah Goes From a $5M Round To $150M in Seven Months

April 23, 2020 | News, Real Estate, Venture Capital

Rising unemployment due to the coronavirus pandemic has Americans worried about their finances. Noah can help.

San Francisco based startup Noah allows homeowners to cash their home equity in these difficult times. The startup just received $150 million in the form of platform capital which it will use to invest in homes as a portion of their equity. (Crunchbase)

Last September, Noah, which previously called itself Patch Homes, raised a Series A round worth $5 million. It is quite a feat to raise 30X fresh funding within seven months. This may be a testament to Noah’s growth: Home equity investments on the platform are 4.5X from just a year ago, and 11.5X from two years ago.

The latest financing came from unnamed institutional investors, including pension funds, according to founder Sahil Gupta.

How it works

Noah partners with homeowners to provide home equity sharing up to $350,000. In return, it will pay up-front financing which homeowners can use any way they want.

Homeowners need to pay no interest or monthly interest. Instead, Noah gets a share in the future appreciation of the house.

Homeowners can pay the company back in 10 years by selling or refinancing the home. If the home increases in value, Noah makes money. If it loses value, Noah shares the losses with the owner.

Currently, Noah is financing home equity in California, Washington, Oregon, Utah, and Colorado. To qualify homeowners must own at least 25% of their home equity and have a credit score of 600+.

Furthermore, prequalification is completed in less than two minutes. Interested homeowners can then apply. They can hope to received funds in just 15 days.

Noah’s debt-free financing

“We see our homeowner partners as more than just a credit score–our model leverages 80 billion data points across more than 60 different variables in order to obtain a holistic understanding of each investment,” said Rahul Parulekar, chief investment officer. “This approach is a game-changer for investors, as it provides access to a historically stable asset class and a long-term growth opportunity for them to invest in equity instead of debt.”

Related Story:  Real Estate: iBuyer Zillow Freezes Home Buying; Expert Warns of Housing Market Shutdown

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Digital Assets: MicroStrategy’s Saylor, El Salvador’s Bukele Both Buy The Bitcoin Dip
November 30, 2021     Digital Assets, Latest News, News

Path-breaking corporate bitcoin investor MicroStrategy (NASDAQ: MSTR) said in a filing Monday that it purchased approximately 7,002 bitcoins for about $414.4 million in cash, or $59,187 per coin, between October…
FinTech: London-Listed, Global Fintech Wise To Expand Its North America Business
November 30, 2021     FinTech, News

Wise (LON: WISE), the global payments processor previously known as TransferWise, announced a 2022 expansion plan for its operations in North America given its solid growth in the half year…
Alternative Investments/Real Estate: UOB Launches APAC-Focused, Green REIT ETF

Singapore’s United Overseas Bank ( UOB ) Asset Management has launched the UOB APAC Green REIT ETF (GRE SP), which has been listed on Singapore Exchange and provides ESG-tilted exposure…
Venture Capital: European VC Fund Partech Closes $750M Second Growth Fund
November 30, 2021     News, Venture Capital

Partech, which invests its venture capital in tech and digital companies at all stages in Europe, North America, Africa and Asia, announced today the close of its second fund at…