Hearth, a financial technology platform for the American craftsman, announced it secured $23 million in Series B funding.
Home Improvement Loan App Hearth Raises $23M in Series B Fundraising Round
Austin, Texas - May 19, 2021 - This latest round of funding allows the company to enable more home improvement professionals with digital financial services, powering an industry that generates over $100 billion in annual revenue.
The funding round is led by Human Capital, a San Francisco-based venture firm. Other investors include 8VC, Suro Capital, Jay Levine, Barry Sternlicht, and The Chainsmokers. This is in addition to a $28 million round the company previously raised from investors like 8VC, Founders Fund, and Goldcrest Capital since starting the business four years ago.
Hearth’s flagship financing product enables its customer base of contractors to quote projects as monthly payments in real-time instead of one lump cost, which removes financial barriers for many homeowners facing renovation or repair costs. Contractors also use Hearth’s platform to send digital invoices, collect payments, and obtain general liability and workers’ compensation insurance to protect their bottom lines. The company plans to aggressively expand its product suite to fundamentally transform the financial service's backend for craftsmen.
“Our work at Hearth is about translating the incredible amount of innovation in digital financial services into tools that are accessible and useful to the small to medium-sized contracting businesses,” said Anthony Ghosn, Hearth co-founder and CEO. “We were the first in the market to enable the SMB segment with financing and we’re looking to build on our momentum by innovating around the rest of the financial services stack. With this additional capital, we’ll focus on expanding the features and resources available to our customers, as well as quickly growing our team.”
Hearth plans to double in size from 100 to 200 employees by the end of 2021 across its Austin and San Francisco offices. The company’s strategy for growth includes adding more offerings to its product suite, which currently includes financing and its new digital invoicing solution, Hearth Pay.
“We know our customers want to spend less time managing their business and more time focused on their craft,” said Anna Fabian, SVP of Product at Hearth.
“Our financing and payment products have been so well received by our customers that we are now developing a suite of financial and workflow tools specifically tailored to contractors to help them run their business, save time, and protect their profits,” said Fabian.