Aven Raises $142 Million In Series D To Expand Home Equity Credit Card
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Aven, a California-based company, has raised $142 million in a series D financing round to make its home equity credit card available to homeowners throughout the US.
The investment round was led by General Catalyst and Khosla Ventures, with involvement from other investors like Founders Fund, Electric Capital, and Caffeinated Capital.
Aven was established in 2019 by Murtada Shah, Collin Wikman, and Sadi Khan, former engineering, design, and products leaders at Square and Facebook.
The Funding Will Assist Aven In Launching The Home Card Nationwide
Its inaugural offering, the Aven Home Card, lets homeowners quickly get money from their home equity, starting at no cost. It works like a regular credit card.
Since it started in California in 2022, the firm has given out over $1.5 billion in credit for the Home Card and has a 4.9-star rating on Trustpilot. So far, Aven has saved its clients more than $100 million in interest payments.
The Co-founder and Chief Executive Officer of Aven, Sadi Khan, stated that the company believes anyone with an asset and a solid credit history should be able to use secured credit. He added that unsecured credit is costly and not ideal. Khan further said that the firm’s equity credit cards let people use their assets for credit, saving them a lot of money while still being convenient.
In the previous year, Aven’s revenue grew about threefold, and it launched a free, mobile-focused financial advisory tool named Aven Advisor, which quickly gathered over 160,000 users. The investment will facilitate the rollout of Aven’s Home Card across all 50 states, enhance Advisor, and explore new areas like mortgage refinancing and auto-backed cards.
Aven Is Introducing An Advisory Board To Help The Company Grow
Vinod Khosla from Khosla Ventures said that by using advanced technology to enhance efficiency, Aven has designed a product that lowers the cost of capital by more than 50% for most US homeowners with alternative credit cards.
The organization also unveiled an advisory board dedicated to helping the company grow. The board will also protect the interests of its cardholders and advise on strategic possibilities and industry conditions.
The Advisory Board will consist of four executives: Kevin Warsh, ex-member of the Federal Reserve Board of Governors; Jim Messina, former White House Deputy Chief of Staff in the Obama era; Tim Mayopoulos, ex-Cheif Executive Officer of Fannie Mae; and Michael DeVito, former Executive Director of Freddie Mac.
