The fintech company Aven, which offers home-equity-backed consumer credit cards, has reported the completion of the Series D Funding Round, raising $142 million funding; it was led by the General Catalyst and Khosla Ventures.
With this latest investment, Aven achieved unicorn status by bringing the world’s first home-equity-based credit cards to homeowners in all 50 states.
A unique credit card, Aven, focuses on helping to decrease customers’ credit card interest rates by 50 per cent and tapping into home equity.
The general catalyst and Khosla investors, who were announced as the co-lead investors are the existing investors, Electric Capital, Caffeinated Capital, The General Partnership, and The Founders Fund.
Aven’s Journey in Five Years
Established in 2019, the credit card and fintech startup Aven took only five years to achieve unicorn status. It was founded by the company’s former product, design, and engineering executives, Sadi Khan, Collin Wikman and Murtada Shah, who worked for Facebook and Square, respectively.
After gaining traction in 2022, Aven is currently progressing in providing customers with the most convenient capital access to the capital market.
Aven’s first product, the Home Card, allows customers to access their home equity within minutes, starting at a $0 balance, while maintaining the benefits of a traditional card.
In the two years following its launch, Aven has issued $1.5 billion in its credit lines, eventually saving customers from paying $100 m in interest payments.
Save Without Sacrificing Convenience
The co-founder and CEO of Aven, talking about the Credit card said,
“We believe there’s no reason for anyone who owns an asset and has a good credit history to use unsecured credit. Unsecured credit is expensive and unhealthy. With our asset-backed credit cards, we give consumers credit for what they own – saving them thousands of dollars without sacrificing convenience.”
Aven Plans To Expand
Following its successful growth, Aven invested in a series of financial products that could match. Following the company’s 75 percent growth, it launched a free, and mobile-first financial tool. Currently, it has more than 16,000 members.
The Khosla Ventures, Vinod Khosla, said,
“By using technology to drive efficiency, Aven has built a product that responsibly helps drive down the cost of capital by over 50% for most US homeowners who are using alternative credit cards.”
The credit card application is currently available in Alabama, Alaska, Arkansas, Arizona, California, Colorado, Florida, Iowa, Illinois, Kansas, Kentucky, Louisiana, Maine, Michigan, Minnesota, Mississippi, North Carolina, North Dakota, Nebraska, New Hampshire, New Jersey, New Mexico, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Tennessee, Utah, Virginia, Wisconsin and Wyoming.
