By [Your Name], July 2, 2025
In an era where rising housing costs have locked millions out of traditional borrowing and home improvements, one startup is pioneering an alternative. Bonus Homes, a home equity-sharing startup, announced it has raised a $15.5 million seed round led by a16z Perennial, with participation from BoxGroup, Third Prime, and notable angel investors including Adam Nash (CEO of Daffy) and Gokul Rajaram.
The funding will fuel Bonus Homes’ mission to help homeowners unlock the value of their homes without taking on more debt — an increasingly attractive proposition in a high-interest-rate environment.
Rethinking Home Equity
Traditional home equity products such as HELOCs (Home Equity Lines of Credit) and cash-out refinancing require homeowners to qualify for additional debt and make monthly payments, often at steep interest rates.
Bonus Homes offers a different path.
By purchasing a minority stake in a homeowner’s property, Bonus Homes allows homeowners to access a lump sum of cash upfront without monthly repayments. When the home is eventually sold or refinanced, Bonus Homes recoups its investment, sharing in the appreciation (or depreciation) of the property’s value.
This shared appreciation model, though not new in concept, has been historically limited to high-net-worth individuals and niche lenders. Bonus Homes aims to democratize access, with an intuitive platform and transparent terms.
Why Now?
Housing affordability has plummeted in many U.S. markets. According to the National Association of Realtors, median home prices in the U.S. have increased by over 40% in the last five years, while wages have lagged behind.
At the same time, mortgage rates have climbed to their highest level in over two decades, closing off refinancing options for many homeowners. These dynamics have created fertile ground for innovative models like Bonus Homes’ to flourish.
“We believe millions of Americans are ‘house rich but cash poor,’ and our model helps them unlock their equity without being shackled by more debt,” said Sarah Tan, CEO and co-founder of Bonus Homes.
How It Works
Homeowners apply on Bonus Homes’ website and receive a valuation based on their property, neighborhood trends, and future growth potential.
Bonus Homes offers an upfront cash payment — typically 5–20% of the home’s value — in exchange for a stake in the home’s future appreciation.
- No monthly payments
- No interest
- Homeowners retain full occupancy rights
- Buyback options available if they choose to refinance or sell early
Importantly, if the property depreciates, Bonus Homes also shares in the loss — aligning its incentives with homeowners.
The Investors’ Take
A16z Perennial’s lead partner on the deal, Jenny Lee, called Bonus Homes a “paradigm shift in residential real estate finance”, saying:
“The U.S. housing market has been overdue for innovation. Bonus Homes offers financial flexibility to homeowners at a time when it’s desperately needed.”
Other investors echoed the sentiment, noting the potential to scale beyond residential homeowners into rental properties, vacation homes, and even commercial spaces.
Challenges Ahead
While the model is promising, it’s not without risks:
- Home price volatility can reduce returns
- Regulatory scrutiny may increase, especially around disclosure and consumer protection
- Educating homeowners about shared appreciation agreements will be critical
Competitors like Point, Unison, and Hometap have already carved out niches in the equity-sharing space. Bonus Homes differentiates itself through its tech-driven platform and transparent fee structures.
Future Outlook
With fresh capital, Bonus Homes plans to expand to more states — it is currently operational in California, Washington, and Texas — and invest in its technology platform to streamline applications and valuations.
They are also building partnerships with real estate agents and mortgage brokers to integrate their product into more homeowner journeys.
“This funding enables us to accelerate our mission and bring our solution to millions more Americans,” said Tan.
