Lower, the millennial- and Gen-Z-focused home finance platform, has raised $100 million in its Series A Funding round, led by venture capital firm Accel. Lower, which is already profitable and growing rapidly, plans to use the funds to expand its product line and accelerate its growth.
This is one of the largest bootstrapped fintech companies to raise a Series A, having crossed several hundred million in revenue, and the largest-ever Series A round raised by an Ohio company, Lower said.
“My co-founders and I started this company because we saw a need in this industry to make the process easier for consumers. We’re all actively involved in growing the company and knew the next stage of our journey would be accelerated by bringing in a top firm like Accel,” said co-founder and CEO Dan Snyder. “More investment means faster growth and more impact. Homeownership is the greatest wealth creator for Americans and Accel’s history of supporting bootstrap companies and their investment means we can help more people achieve it faster.”
Accel partner John Locke is joining Lower’s board of directors.
“Dan and the Lower team have quietly created one of the most interesting fintech companies in the U.S.,” Lock said. “Lower has a unique opportunity to break down barriers to home ownership. They have an established growth trajectory, with over $300M in revenue. We are excited to partner with them as they continue this journey.”
Lower’s platform takes a holistic approach to the homeownership journey through multiple channels. Consumers can go online or download the app and find a one-stop shop experience where they can save for a home, get a mortgage and protect their home through its insurance marketplace. Those who prefer to work with a local realtor or builder can utilize their channel partner network and its expert advisors.
The funding announcement follows on the heels of Lower’s mobile app launch, featuring the new deposit account called “HomeFund.” The interest-bearing FDIC-insured deposit account with a 0.75% annual percentage yield is designed to help consumers make progress on their home buying journey with a dollar-for-dollar match in HomeCash rewards up to the first $1,000 saved.
