Aven Reaches Unicorn Status After US$142m Series D Funding

Aven, the finance technology company offering consumer credit cards backed by home equity, has announced the completion of a US$142m Series D funding round, led by Khosla Ventures and General Catalyst. 

The latest investment in Aven sees it reach unicorn status, as it aims to bring the world’s first home equity-backed credit cards to homeowners in all of the US’ 50 States. 

Aven’s credit card product is aimed at helping homeowners cut their credit card interest rates but as much as 50%, by efficiently and responsibly tapping into home equity. 

Joining co-lead investors Khosla Ventures and General Catalyst in Aven’s Series D round are existing investors Caffeinated Capital, Electric Capital, Founders Fund and The General Partnership. 

Aven: A five-year journey to rapid, sustained growth

Founded in just 2019, Aven has propelled itself to unicorn status in just five years. The company was established by Sadi Khan, Collin Wikman and Murtada Shah, the former product, design and engineering executives at Facebook and Square. 

Indeed, it was only in 2022 that Aven first launched, further highlighting the rapidity of its impressive growth. Today, Aven is on a mission to provide its consumers with the lowest costs and most convenient access to capital. 

Its first product, Aven Home Card, enables homeowners to access their home equity in a matter of minutes – beginning at $0 to get – maintaining all the benefits of a traditional credit card. 

In the two years post-launch, Aven has issued over US$1.5bn in credit lines for its Home Card, saving customers over US$100m in interest payments to date. 

Sadi Khan, Co-founder and CEO of Aven, says: "We believe there's no reason for anyone who owns an asset and has a good credit history to use unsecured credit. Full stop. 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: Broadening its product offering

Amid its successful growth, Aven has launched a series of new financial products to match. After growing its revenue three-fold in 2023, the fintech startup launched a free, mobile-first financial advisory tool – Aven Advisor. Today, the tool has over 160,000 members.

With its latest investment, Aven plans to offer Aven Home Card in all 50 US States, scale its advisory tool and expand into new verticals including auto-backed cards and mortgage refinancing. 

Vinod Khosla of Khosla Ventures adds: “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.”

Aven is also announcing the formation of an advisory board, focused on helping it scale while protecting the interests of its cardholders and offering insights on industry conditions and strategic opportunities. 

The Aven Advisory Board will be made up of four executives: Michael DeVito, former CEO of Freddie Mac; Tim Mayopoulos, former CEO of Fannie Mae; Jim Messina, former Deputy Chief of Staff to the White House under the Obama administration; and Kevin Warsh, former member of the Board of Governors of the Federal Reserve System.

New board member Kevin Warsh adds: “I was blown away by the Aven team when I first met them several years ago. However, I was initially sceptical that their core product would scale in the staid, calcified industry structure that has prevailed in the mortgage market for decades. The Aven team is proving the sceptics wrong in a big way. I am thrilled to be their partner.”

Aven 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.

For more venture capital news in the fintech space, follow the link here. You can also see out Top 10 venture capital firms investing in fintech. 

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