Button Finance, a fintech mortgage lender focused on home equity, has closed a USD2 million seed raise.
The capital will allow Button Finance to hire talent and to develop its proprietary technology further. Entities advised by Hildene Capital Management, LLC (Hildene), participated in the seed funding round. Hildene is a USD13 billion structured credit focused asset manager based in Stamford, CT.
Button Finance enables homeowners to borrow against their home equity through a hassle-free online process that delivers quick decisions and funding in as little as five days. The company has built an AI-powered underwriting platform that enables it to lend to borrowers who are under-served by traditional lenders. While Button’s immediate focus is on home equity loans, the company plans to expand into a broader range of loan products over the next 24 months.
“Demand was strong for the round, and we were oversubscribed and happy with our new partners,” says Jason Harris, CEO of Button Finance. “This last year has been challenging for everyone; however, American homeowners now have more untapped equity than ever before, given the recent home price rally. Button Finance’s products empower borrowers to access their home equity, pay down high-interest debt, and make value-enhancing renovations to their homes.”
Hildene was joined by L&L Capital Partners and angel investors from the NY fintech ecosystem.
“The traditional players in the mortgage industry have been slow to adopt new technology and innovative underwriting. The Button Finance team spotted a gap in the market, and they built a robust underwriting model to address it, leading to higher risk-adjusted yields,” says Dushyant Mehra, Co-CIO of Hildene Capital Management. “We are excited to be working with Button as they continue to build their unique origination platform.”
Concurrent with this capital raise, Button Finance announced the hire of Josh Hager to oversee mortgage operations. Josh has over 20 years of experience in the mortgage industry, including department head roles at numerous fintech mortgage originators, including Better.com, Homeward, and Divvy Homes.