New York’s Saluda Grade, a venture firm focused on emerging real estate opportunities, has joined a $30 million Series B for Unlock Technologies, a fintech firm that helps homeowners cash in on home equity ahead of potential sale.
The round was led by Dallas, Texas-based D2 Asset Management, and included Chicago’s Second Century Ventures and Reach, the venture unit of the National Association of Realtors. Besides the equity investment, the firms pledged $250 million in capital to support Unlock’s growth.
Value Proposition
Saluda Grade CEO Ryan Craft, a former Merrill Lynch executive, is a co-founder of Unlock, which has offices in New York and Tempe, Ariz. So far, Unlock has raised $430 million in equity and debt. Unlock is led by CEO James Riccitelli, who previously served as co-CEO of Unison Home Ownership Investors.
“This funding validates our vision of democratizing home equity and empowering homeowners to achieve their financial goals,” said Riccitelli, CEO of Unlock. “With this capital, we will accelerate our growth and continue to develop innovative solutions that unlock the true value of homeownership.”
Unlock’s flagship product is a home equity agreement that allows homeowners to obtain part of their home’s future value without taking out a loan. They would not be required to make interest or any other payments until the home’s sale. The company takes a cut of the home’s sale as and when it occurs.
Recent Momentum
The funding comes in time to build on a growth momentum, Unlock said. The company has experienced 98% year-over-year growth, with the surge in demand reflecting an “increasing macro need for flexible and accessible financial products that leverage the value of homeownership.”
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Unlock said it would use the new funds to execute on its growth strategy, built on three core initiatives — diversified home equity solutions, enhanced technology platform and nationwide expansion. Upgrades planned for its technology platform include automation of key processes, enhanced efficiencies and data analytics.
“Unlock has exhibited exceptional leadership in creating innovative solutions to address critical challenges in today’s housing market,” said Luke Doramus, co-founder and managing partner of D2 Asset Management. “The home equity agreement has the potential to revolutionize how homeowners can tap into their home equity, and we are excited to make a significant commitment to support the Unlock team as they expand their business.”
Unlock is available in 14 states — Arizona, California, Colorado, Florida, Michigan, North Carolina, New Jersey, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia and Washington.
