Fraction offers a digital platform that enables homeowners to access the equity in their homes without monthly payments, a new mortgage, or eroding existing equity. Since launching in February 2021, clients have received an average of $350,000 from their home equity. Interest on Fraction’s product is tied to home appreciation, and the company currently offers a 40% loan-to-value (LTV) on a five-year term, with plans to increase to 50% LTV and introduce an optional 10-year term. Clients use proceeds to reduce debt, invest in their home, buy new homes, or cover unexpected expenses. Fraction partners with financial advisors and mortgage brokers and is building a new Loan Origination System to improve the customer experience. The company is expanding into the U.S. market and hiring to support new market launches and product development. Fraction Technologies is a digital platform that provides socially conscious financial solutions and is based in Vancouver, BC and San Francisco, CA. Its flagship product, the Fraction Appreciation Mortgage, enables homeowners to increase their income or cover unexpected expenses by replacing monthly payments with an interest payment payable upon sale or when the homeowner decides not to renew. In contrast to home equity loans or traditional mortgages, the product has no monthly payments and instead accrues an amount due at sale or non-renewal. The company raised C$289m in a combination of equity and debt financing from backers including Impression Ventures, Primetime Partners, Global Founders Capital, Panache Ventures and others. Fraction intends to use the funds to launch in Canada, expand its team and technology platform, and prepare for a U.S. launch. The company was co-founded by Hayden James (CEO), Rayan Rafay (COO/CFO) and Josh Baker (CTO).

Total raised

$244M

Funding rounds

3

Latest round

Series A

Latest activity

Oct 2021