Fraction raises an additional $ 20 million in Series A financing to continue expanding product offering and entering U.S. market

Fraction transforms the mortgage and real estate landscape with a more flexible and transparent solution

VANCOUVER, British Columbia, Oct. 20, 2021 (GLOBE NEWSWIRE) – Fraction, which has built a platform to help homeowners access home equity, today announced it has raised $ 20 million Canadian (US $ 16 million) in Series A funding. QED Investors led the round, with partners being the former founders of Capital One, as well as existing investors including Impression Ventures, Primetime Partners, Panache Ventures and Global Founders Capital. Notable angel investors of the cycle include the founders of Brex and the founding team of Bitso.

The new funding round will be used primarily 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 financial technology solution that allows homeowners to access their home equity without monthly payments. The company’s clients have benefited from Fraction’s cash payments to reduce their existing debts, invest in their home, buy a new home, and cover unforeseen expenses. Since its launch in February 2021, Fraction clients have received an average of $ 350,000 from their home equity. This home equity loan is an improvement on the existing mortgage and real estate landscape, in that there are no monthly payments required and the interest rate is based on the appreciation of your home.

“We want to make managing the equity in your home as easy and transparent as booking a stay on Airbnb, and we’re very happy that QED is joining us in helping us do that,” said the co. -Founder and CEO Hayden James. “In addition to expanding in the United States, we are also developing a brand new Loan Creation System (LOS) to be able to fundamentally improve the customer experience. “

Making financial products more fair and transparent is a priority for Fraction. The company is currently offering its clients a 40 percent loan to value (LTV) with a five-year term and will soon increase this amount to 50 percent LTV with the option of a 10-year term offer. With Fraction launching into new markets and expanding product offerings, they are also looking to hire a variety of positions. If you are interested in joining the Fraction team, check out the online opportunities at: https://www.fraction.com/careers.

About the fraction
Fraction is a financial technology company offering a digital platform that provides socially responsible financial solutions. Fraction’s signature product allows homeowners to access the locked-in value of their home without having to make monthly payments, take out a new mortgage, or erode their home equity. Clients can use their home equity to increase their monthly income, buy a second home, swap an existing mortgage for a mortgage with no monthly payments, and more. Fraction’s network of partners – financial advisors and mortgage brokers – can work with Fraction to provide its clients with an innovative and user-friendly mortgage alternative. Fraction is committed to using technology to create fair financial solutions for all. Find out more: https://www.fraction.com/.

About QED Investors

QED Investors is a leading global venture capital firm based in Alexandria, Virginia. Founded by Nigel Morris and Frank Rotman in 2007, QED Investors focuses on investing in early stage and disruptive financial services companies in the US, UK, Latin America and the South East. Asia. QED Investors is dedicated to building great businesses and employs a unique, hands-on approach that draws on decades of entrepreneurial and operational experience from our partners, helping their businesses 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.

Media contact:
Rebecca Hurl
Brookline Public Relations
403-818-6918
[email protected]

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