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EquiFi Corporation Closes $2.5m Pre-Series A Convertible Debt Round

SAN JOSE, Calif., Nov. 8, 2018 /PRNewswire/ -- EquiFi Corporation, developers of the Equity Funding Instrument (EFI™), a home equity-based financing solution transforming the relationship between debt, equity and homeownership, today announced it has closed a $2.5 million convertible debt funding round. The round included participation from a private investment firm and from the founders of Intero Real Estate. 

EquiFi's EFI™ offers homebuyers the ability to benefit from an equity co-investment which can be used to make a larger down payment, and for existing homeowners provides access to a portion of their locked up home equity without incurring debt. EquiFi will license the EFI to "origination partners" – banks, mortgage lenders, credit unions, corporations, and public organizations – which will market the EFI directly to new and existing homeowners.

"We're very excited to announce the completion of this influential funding round. The capital raised will fund ongoing operations, including the continued development of our technology platform, ongoing federal and state regulatory activities, and the building of strategic relationships with the capital markets to meet the growing consumer demand for equity alternatives to debt," said David Shapiro, founder and chief executive officer, EquiFi Corporation. "We're seeing tremendous interest from all constituencies in the need for a sustainable and efficient financing platform; the $30+ trillion in home value is an enormous asset class."

This convertible funding round is structured to provide bridge capital as the company achieves a series of early-stage operational milestones, with the notes intended to convert to a follow-on Series A preferred stock equity round in the near term. 

About EquiFi 


EquiFi's mission is to liberate consumers from debt and transform the way they manage wealth starting with their most important asset—their home. EquiFi is a C Corporation with a Public Benefit Corporation designation and is committed to fairness and transparency across its entire eco-system. Based on a powerful, proprietary technology platform, EquiFi's Equity Funding Instrument (EFI™) matches consumer housing needs with investor interest. 

The EFI is a debt free product with no monthly payment licensed to "origination partners" – banks, mortgage lenders, credit unions, financial advisors, as well as corporate and public organizations – all are interested in helping consumers purchase a home or needing to access equity in a home.

EquiFi to launch shared equity solution for homeowners looking for cash

Product connects homeowners with investors to provide debt-free access to equity

Posted on November 2, by Alcynna Lloyd at Housing Wire

 

Americans now have an unprecedented $6 trillion-plus in home equity, spurring the creation of products designed to help homeowners leverage this tremendous source of wealth.

EquiFi, a public benefit corporation, is set to do just that as it prepares to launch a product it hopes will transform the way consumers access their equity.

“EquiFi is focused on helping people achieve their dreams through equity partnerships rather than through taking on more and more debt,” EquiFi Founder and CEO David Shapiro said. “Up until now, the only way people have funded their lives has been through borrowing money, and many find themselves trapped in a debt spiral.”

The solution, Equity Funding Instrument, gives homeowners a new channel to access the liquidity immobilized in their homes. EFI matches consumer needs with investor interest, working as an alternative financing instrument. The product requires no monthly payment and allows consumers to maintain ownership of their homes.

Instead of paying interest each month, the EFI cost to the consumer is based on the home's future value. Consumers can borrow money from an investor who is entitled to a portion of the homes' value when they sell, decide to prepay or pass away.

The California-based company plans to start offering EFI as early as December, distributing through banks, mortgage originators, broker-dealers, financial advisors, and possibly even through corporations that can offer EFI as an employee benefit. According to the company, EFI is an alternative to reverse mortgages and home equity loan products. 

“EquiFi wants to help people create and manage their wealth within their home and outside of it,” Shapiro said. “Our EFI shared equity product has the capacity to break down the ridiculous belief that the only way we can finance a home is through borrowing as much as we can.”

Shapiro said EquiFi has plans to introduce EFI in 16 states, eventually expanding nationwide.

The company recently brought on a new chief investment officer, hiring Fred Matera to advance its capital markets development.

“Our mission to help homeowners and homebuyers requires significant investment capital and Fred will be taking that challenge head on,” Shapiro said.

Matera said he’s excited to work on private-sector solutions that seek to make housing more affordable and more stable.

“Historically, solutions have focused exclusively on the debt side – how do we add leverage or lower the cost of debt?” Matera said. “EquiFi's focus is on the equity component, using the capital markets to optimize the sizing, pricing and risk allocation of the equity in one's home.”

“We all have a stake in the soundness of our financial system and increasing debt-to-income ratios and offering 100% financing ultimately puts our system and our society at risk,” Shapiro said. “With shared equity as an alternative, we no longer are forced to choose between our dreams and our willingness to take on high levels of debt.”

Equity-based Home Financing Innovator EquiFi Corporation Appoints Fred J. Matera Chief Investment Officer

Former Chief Investment Officer at Redwood Trust, Matera To Join EquiFi Leadership Team

SAN JOSE, Calif., Oct. 3, 2018 - EquiFi Corporation, developers of the Equity Funding Instrument (EFI™), a home equity-based financing solution transforming the relationship between debt, equity and homeownership, today announced the appointment of Fred J. Matera, as executive vice president (EVP) and chief investment officer (CIO).

A highly accomplished Wall Street investment  banking and financial markets expert, Matera will oversee EquiFi's capital markets development, securitization, portfolio construction, and management services, and will be reporting to David Shapiro, EquiFi's founder and chief executive officer.

"Fred's Wall Street and mortgage experience adds a significant capability to EquiFi's executive and operational teams," said David Shapiro, founder and CEO, EquiFi. "Our mission to help homeowners and homebuyers requires significant investment capital and Fred will be taking that challenge head on."

Matera was formerly the chief investment officer and EVP at Redwood Trust, a market leading specialty finance company focused on credit investing and securitization of jumbo residential mortgages. He also held positions as managing director and co-head of Structured Credit at RBS Greenwich Capital, director at Donaldson Lufkin Jenrette/Credit Suisse, vice president at Goldman Sachs and economic analyst at the Federal Reserve Bank of New York. Most recently Matera was COO and chief investment officer at LendUS/RPM, a private mortgage lender, where he was chairman of the Credit Committee, co-headed bank operations and was responsible for loan manufacturing processes and external capital raising.

"Housing finance is so important for the economy and impacts people's lives directly," said Fred Matera, EVP and CIO, EquiFi. "It's exciting to be joining the EquiFi team to work on innovative, private-sector solutions that seek to make housing more affordable and more stable. Historically solutions have focused exclusively on the debt side, how do we add leverage or lower cost of debt. EquiFi's focus is on the equity component, using the capital markets to optimize the sizing, pricing and risk allocation of the equity in one's home."

Matera holds a bachelor's degree in Economics from Tufts University and an MBA in Finance from the Wharton School at the University of Pennsylvania. 

About EquiFi
EquiFi's mission is to liberate consumers from debt and transform the way they manage wealth starting with their most important asset—their home. EquiFi is a C Corporation with a Public Benefit Corporation designation and is committed to fairness and transparency across its entire eco-system. Based on a powerful, proprietary technology platform, EquiFi's Equity Funding Instrument (EFI™) matches consumer housing needs with investor interest. 

The EFI is a debt free product with no monthly payment licensed to "origination partners" – banks, mortgage lenders, credit unions, financial advisors, as well as corporate and public organizations – all are interested in helping consumers purchase a home or needing to access equity in a home.

 

 

 

Meet the Real Estate Tech Founder: David Shapiro from EquiFi Corporation

Posted on April 29, 2018 by Drew Meyers on GeekEstate

In our latest real estate tech entrepreneur interview, we’re speaking with  David Shapiro, co-founder of EquiFi Corporation.

Without further ado…

What do you do?

I created EquiFi to be a blend of a Fintech and Specialty Finance Company. It offers an equity-based home financing product for homeowners and homebuyers and give investors access to home price appreciation in the $30 trillion housing market through the Equity Funding Instrument (EFITM). The EFI is an alternative financing instrument that provides new home buyers with the ability to benefit from an equity co-investment in the purchase of their home and offers existing homeowners a new channel to access the existing equity in their homes.

What problem does your product/service solve?

I help liberate consumers from the burden of overfinancing their homes, thereby creating greater and more diversified wealth while increasing the population of qualified home buyers giving real estate agents a larger market to prospect.

What are you most excited about right now?

I organized EquiFi as a Public Benefit Corporation which is a C Corporation that has a stated social purpose. I am finally getting Wall Street to realize that a PBC can also make money.

What’s next for you?

We are working on an upcoming product launch with mortgage originators and a housing finance agency.

What’s a cause you’re passionate about and why?

Personal financial awareness and financial psychology. I’m an entrepreneur, an author, and a speaker. I’ve written extensively (3 books and countless articles) on financial well-being and needs-based selling. The challenges have never been greater than they are today with the largest generation (millennials) at risk of not learning the single most important component of financial planning…compound interest!

Thanks to David for sharing his story. If you’d like to connect, find him on LinkedIn here.

 

 

 

 

Walt & Company Named by EquiFi as Public Relations Agency of Record

 

CAMPBELL, Calif., April 3, 2018 -- Walt & Company, an award-winning Silicon Valley tech public relations and social media agency, today announced that it has been selected by EquiFi Corporation as its public relations agency of record. EquiFi, a C Corp with a Public Benefit Corporation designation, is a Silicon Valley based financial technology start-up that has developed the Equity Funding Instrument (EFI™).  The EFI is an alternative financing instrument that provides new home buyers with the ability to benefit from an equity co-investment in the purchase of their home, and offers existing homeowners a new channel to access the existing equity in their homes, liberating them from traditional debt-based solutions.

"From millennials to seniors, homeownership is generally the most important component of their financial security. We created the EFI to help people better understand their relationship with debt and wealth accumulation,” said David Shapiro, EquiFi’s founder and chief executive officer.  “We selected Walt & Company as our PR and social media partner based on its proven ability to develop programs that reach and influence consumers. In the expanding and highly competitive fin-tech marketplace, working with Walt & Company will help EquiFi standout and be heard."

Walt & Company will be providing EquiFi with a range of communications services, including communications strategy, product launch campaigns, media and analyst relations, industry leadership positioning, and partner/customer relations.

"EquiFi’s unique market approach and machine-based technology platform makes for a compelling story across a wide range of financial and consumer channels.  In addition, it is part of a larger story in the exploding fin-tech marketplace,” said Robert Walt, president of Walt & Company. "We look forward to working closely with EquiFi on the upcoming launch and support of the EFI."

 

About EquiFi

 

EquiFi’s mission is to transform the way that consumers create and manage wealth starting with their most important asset – their home. Organized as a for-profit Public Benefit Corporation, EquiFi is committed to fairness across its entire ecosystem.  Based on a powerful, proprietary technology platform, EquiFi’s Equity Funding Instrument (EFI™) matches consumer housing needs with investor interests.  For more information, please visit www.EquiFi.com.

About Walt & Company

Walt & Company is an award winning Silicon Valley tech PR and social media agency.  It develops and implements strategic programs and creative campaigns that advance its clients' marketing and communications agendas by generating actionable awareness in influential formats and forums.  For more than 25 years, when it comes to building corporate credibility, product awareness and brand recognition, Walt & Company has its clients covered. For further information, visit www.walt.com.  

EquiFi Corporation Acquires Vistia Group

Growth in Home Equity Sharing Sector Intensifies

 

SAN JOSE, CA – October 4, 2017 – EquiFi Corporation, PBC announced that it has acquired competitor Vistia Group LLC.  EquiFi is organized as a Public Benefit Corporation with operations in San Jose, CA, New York, NY, and Washington D.C.  Vistia is based in New York City, and both organizations co-invest with homebuyers and homeowners to provide a non-debt choice for home financing. The deal marks the first transaction in the burgeoning shared appreciation sector.

 

EquiFi founder and CEO David Shapiro called the acquisition highly synergistic. “EquiFi is revolutionizing the way people approach home financing, wealth creation, and wealth management” said Shapiro. “Given our shared vision, we’ll be able to achieve greater scale and a larger audience through this acquisition.” Shapiro declined to disclose financial terms of the agreement.

 

Steven Coulis, the founder of Vistia, has transitioned into senior management at EquiFi, based in New York. Coulis began Vistia in early 2016 after 9 years in the hedge fund and capital markets industry. Coulis explains that “the residential real estate market is completely debt-driven, which creates inefficiencies and hidden risks. EquiFi’s solution promotes sustainable and risk-balanced homeownership, both for purchasers and current owners. The opportunity for value-creation is enormous.”  

 

 

About EquiFi

 

EquiFi’s first product, the Equity Funding Instrument (EFI™), allows homeowners to purchase a home with lower monthly mortgage payments. The EFI is also offered as an alternative to both reverse mortgages and home equity loan products. In all cases, the equity investment provided by EquiFi has no monthly payment and no calendar date for repayment, and EquiFi shares a portion of the home price appreciation with the homeowner when a terminating event occurs.

 

EquiFi distributes its solution through a wide range of banks, mortgage originators, broker dealers, financial advisors, and through corporations offering the EFI as an employee benefit. The institutions will be offering EFIs in early 2018. For more information visit www.equifi.com.