Edison Partners, a growth equity firm based in Princeton, is leading a $11 million financing round in New York City-based Fund That Flip, an online financing platform for the fix-and-flip residential real estate market.
Fund That Flip provides redevelopers funds for their real estate projects through a network of accredited and institutional investors who can purchase fractional shares of a loan and earn 8% to 9% annualized yield.
“The fix-and-flip market is largely untapped and fragmented, with the largest originator underwriting less than 3% of the market volume. Fund That Flip is well-positioned as an early market mover in tech-enabled real estate finance,” Jennifer Lee, vice president at Edison Partners who led the investment and will join the board of directors, said. “The company’s capital efficiency, compelling economics and strong cash flow profile are impressive, and we’re confident that CEO Matt Rodak and the management team can continue to rapidly grow originations while profitably scaling their lender base.”
The financing round will be used for Fund That Flip’s sales and marketing, developing an internal capital markets capability, and accelerating its technology and products, Edison Partners said.
“We’re building the predominant real estate investment marketplace for investors looking for attractive returns and redevelopers who need capital to so they can focus on what they do best—finding and rehabilitating homes,” said Matt Rodak, CEO and founder of Fund That Flip. “We’re thrilled to work with Edison Partners and appreciate the deep operational expertise they bring to our team. With this investment, we can expand into new territories and capture more market share in the trillion-dollar residential real estate finance industry while creating profitable, exponential growth.”
