New York, NY: Fund That Flip, an award-winning fintech platform and marketplace lender of residential real estate loans, today announced a raise of $11 million from Princeton, NJ-based growth equity firm Edison Partners.
Launched in 2014, Fund That Flip provides short-term loans to experienced real estate redevelopers who buy and renovate residential properties. After origination, Fund That Flip offers accredited and institutional investors the opportunity to purchase fractional shares of the loan and earn an 8%-9% annualized yield.
Fund That Flip participated in the NYC Entrepreneurs Roundtable Accelerator (ERA), which helped propel its seed round, led by Fintech Venture Fund, an Atlanta based early-stage investor. ERA also participated in the seed round. Since then, the company has realized exponential growth, doubling its revenue, loan origination volume and customer base each year. The firm was recently named No. 42 on the 2019 Inc. 500 list of Fastest-Growing Companies in America. Fund That Flip will use the additional capital to expand its market share of the trillion-dollar residential real estate investment industry.
Watch our CEO Matt Rodak speak about the raise and the future of flipping on Yahoo Finance.
Historically low levels of single-family home construction have created an affordability challenge for many willing home buyers in the US. With the average age of a single-family home at 37 years old, millions of properties demand significant investment to meet the preferences of modern home buyers. Real estate redevelopers who leverage Fund That Flip’s financing to renovate aging or neglected properties are able to deliver a like-new home at an attainable price point.
“Our mission is to enable our clients to create wealth and improve communities by investing in real estate. This additional capital is going to further advance the mission to more clients and communities across the country,” said Matt Rodak, CEO and Founder of Fund That Flip. “Edison Partners has an impressive track record of investing in market leaders, and we’re incredibly excited and honored to have them as a partner as we expand our product offerings, technology and services.”
Jennifer Lee, Vice President at Edison Partners, led the investment and will join the Board of Directors at Fund That Flip.
“Fund That Flip’s offering is well-timed with the growth of the residential real estate industry’s addressable market,” said Lee. “As affordability continues to concern many home buyers, the renovation and recycling of existing homes offers an attractive, sustainable solution. We look forward to helping the Fund That Flip team accelerate their vision of being the destination platform for residential real estate investors.”
With the capital, Fund That Flip plans to scale distribution around its core product set in existing and new markets. The company also plans to develop additional residential loan products and provide new ways for institutional and accredited investors to fund their offerings.
About Fund That Flip
Fund That Flip is the leading online platform for investing in short-term residential real estate debt. Their award-winning fintech platform focuses on raising capital for the residential rehab loan market and passive wealth generation for peer-to-peer lenders. With offices in New York City and Cleveland, Fund That Flip helps restore communities across the United States through its network of experienced, dedicated redevelopers backed by a diverse base of institutional and individual investors. Fund That Flip ranked on the 2019 Inc. 500 list of the nation’s fastest-growing private companies. Additional information can be found at www.fundthatflip.com.
About Edison Partners
For more than 30 years, Edison Partners has been helping CEOs and their executive teams grow and scale successful companies. The firm’s investment team brings extensive investing and operating experience to each investment. Through a unique combination of growth capital and the Edison Edge platform, consisting of operating centers of excellence, the Edison Director Network, and executive education programs, Edison employs a truly integrated approach to accelerating growth and creating value for businesses. A team of experts in financial technology, healthcare IT and enterprise solution sectors, Edison targets high-growth companies with $5 to $25 million in revenue; investments also include buyouts, recapitalizations, spinouts and secondary stock purchases.
Edison’s active portfolio has created aggregated market value exceeding $10 billion. Edison Partners is based in Princeton, NJ and manages more than $1.4 billion in assets throughout the eastern United States.