Fraction has raised our Series A!
Fraction Raises Additional $20 million in Series A Funding to Continue to Expand its Product Offering and Enter The US Market
Fraction is transforming the mortgage and home equity landscape with a more flexible and transparent solution.
Fraction, which has built a platform to help homeowners access their home equity, today announced it raised $20 million CAD ($16 million USD) in Series A funding. QED Investors led the round, whose partners are the ex-founders of Capital One, along with existing investors including Impression Ventures, Primetime Partners, Panache Ventures and Global Founders Capital. Notable angel investors of the round include the founders of Brex and the founding team of Bitso.
The new round of financing will be primarily used to fuel Fraction’s expansion into the US market and continue to develop its product offerings to provide even more transparency and flexibility for homeowners to manage their home equity.
Fraction is a fintech solution that enables homeowners to access the equity in their home with no monthly payments. The company’s clients have benefited from Fraction’s cash payments to reduce existing debts, invest in their home, buy a new home and cover unexpected expenses. Since launching in February 2021, Fraction’s clients have received an average of $350,000 from their home equity. This home equity loan is an improvement to the existing mortgage and home equity landscape, in that there are no required monthly payments, and the interest rate is based on the appreciation of your home.
“We want to make managing your home equity as seamless and easy as booking a stay on Airbnb, and we are very excited to have QED joining to help us do that,” says co-founder and CEO Hayden James. “In addition to expanding to the US, we are also building out an entirely new Loan Origination System (LOS) to be able to fundamentally improve upon the customer experience.”
Making financial products more fair and transparent is a priority for Fraction. The company currently offers its clients a 40 per cent loan to value (LTV) on a five-year term and will soon be increasing this to a 50 percent LTV with the option of a 10-year term offer. With Fraction’s launch in new markets and expanded product offerings, they are also looking to hire various positions. If you are interested in joining the team at Fraction, see opportunities online at: https://www.fraction.com/careers.
Fraction is a fintech company offering a digital platform that provides socially conscious financial solutions. Fraction’s signature product empowers homeowners by enabling them to access the value locked in their homes without the need to make monthly payments, take on a new mortgage or erode their home equity. Clients can use the equity in their homes to increase their monthly income, buy a second home, trade an existing mortgage for one without monthly payments, and more. Fraction’s network of partners - financial advisors and mortgage brokers - can work with Fraction to provide their clients with an innovative and consumer-friendly mortgage alternative. Fraction is committed to using technology to create financial solutions that are fair for everyone. Learn more: https://www.fraction.com/.
About QED Investors
QED Investors is a global leading boutique venture capital firm based in Alexandria, Va. Founded by Nigel Morris and Frank Rotman in 2007, QED Investors is focused on investing in early stage, disruptive financial services companies in the U.S., U.K., Latin America and Southeast Asia. QED Investors is dedicated to building great businesses and uses a unique, hands-on approach that leverages our partners’ decades of entrepreneurial and operational experience, helping their companies achieve breakthrough growth. Notable investments include AvidXchange, Bitso, ClearScore, Current, Creditas, Credit Karma, GreenSky, Kavak, Klarna, Konfio, Loft, Mission Lane, Nubank, QuintoAndar, Remitly and SoFi.