RenoFi raises $14 million

RenoFi, which offers an end-to-end loan origination and underwriting platform designed for renovation lending, has raised $14 million in Series A funding. The round was led by Canaan with participation from NYCA Partners and CMFG Ventures.

The core of RenoFi’s technology platform is its Renovation Underwriter (RU) enabling lenders to provide loans based on a home’s post-renovation value (as opposed to current value of the home with a traditional home loan), helping lenders increase the borrowing power of their customers by “11x” on average. Renofi also features a direct-to-consumer offering, connecting borrowers with the best lender.

The startup, which is based in Philadelphia, has raised just over $21 million to date. Since launch, homeowners have generated more than $10 billion in renovation financing demand from lenders powered by RenoFi’s platform.

“We believe more than ever that RenoFi will become the platform powering the de facto financing products for home renovations, a $400B+ market that’s been underserved to date. The team’s progress since its last round has been incredibly strong and speaks to the big future ahead.” – Brendan Dickinson, general partner at Canaan.

“Historically, paying for that renovation is a whole journey in and of itself. Every other major purchase we make in our life has a smart and easy financing solution attached to it. Buying a car? Get an auto loan. Buying a house? Get a mortgage. Going back to school? Get a student loan. Each of these is a purpose-built financial product for a specific use. Remarkably, until now, this has not existed for home renovations. We decided from the outset that the best way to actually help homeowners was to build the rails that America’s great lending institutions needed to bring this new product category online. With the reception we’re getting from lenders, it’s clear we made the right choice.” – Justin Goldman, co-founder and CEO of RenoFi.