New York based residential refinancing platform raised an $11m Series A led by Edison Partners.
| less than a minute read
Edison Partners Leads $11M Growth Round in Fund That Flip
With a low supply of new single-family homes, affordability is a concern for many home buyers in the US. The online real estate finance market is expected to grow to $300 billion by 2025, a 79% compound annual growth rate, as redevelopers finance renovations of existing properties to meet the needs of modern buyers and resell the homes at an attainable price point. Fund That Flip lets redevelopers fund their real estate projects through a network of accredited and institutional investors who can purchase fractional shares of the loan and earn an 8% to 9% annualized yield. The platform is designed for the residential fix-and-flip market, with plans for expansion to additional residential loan products and other new ways for investors to participate. “The fix-and-flip market is largely untapped and fragmented, with the largest originator underwriting less than 3% of the market volume. Fund That Flip is well-positioned as an early market mover in tech-enabled real estate finance,” said Jennifer Lee, Vice President at Edison Partners who led the investment and will join the Board of Directors. “The company’s capital efficiency, compelling economics and strong cash flow profile are impressive, and we’re confident that CEO Matt Rodak and the management team can continue to rapidly grow originations while profitably scaling their lender base.” Lee was recently recognized as a finalist for Finovate's Fintech Woman of the Year and was also named to WSJ Pro Private Equity's Women to Watch list in 2018.
