The multimillion dollar raise comes from alternative asset investment firm Antarctica Capital and will help support Splitero's efforts to scale growth, according to the platform's CEO, Michael Gifford. 

Growth in home equity investment products continues to ramp up with interest rates currently above levels most homeowners currently hold on their existing mortgages. Sometimes referred to as shared appreciation platforms, they are touted by the businesses offering them as a means for homeowners to tap into accrued equity without the need to refinance at a higher rate. 

"Americans have substantial trapped equity in their homes. Splitero provides a means to access this equity in a financially prudent manner is a critical need for many Americans today," said Chandra Patel, managing director at Antarctica Capital, in a press statement.

"Splitero is a fast-growing and innovative company with a strong and experienced leadership team," he added. 

The strategic investment in Splitero arrives more than a year after an $11.7 million Series A funding round. Prior to the latest announcement, the San Diego-based fintech had raised $17.5 million in total, according to Crunchbase. The company was founded in 2021 and currently operates in five Western states: California, Colorado, Oregon, Utah and Washington. 

The cash infusion also comes weeks after similar capital funding announcements for other HEI platforms, including Unison and Unlock Technologies, as the combined effect of elevated rates and rapid growth of home equity over the last few years leads some consumers to seek lending alternatives.

A recent report from Intercontinental Exchange found Americans sitting on a record $11.5 trillion of tappable home equity, with at least $100,000 available to three in five homeowners. 

Meanwhile, secondary market interest in home equity loans and products is rising in tandem with increasing origination volumes. Hometap and Point, both active originators, issued rated securitizations in recent months. 

Alongside the growing potential for new customers, though, scrutiny of shared home appreciation products is also making news. Many platform offerings do not require regular payments as loans would, with customers, instead, owing the percentage of equity originally drawn at time of repayment. Acceleration of home equity since 2020 has left some customers with unpleasant surprises upon realization of the amount due. 

Multiple businesses currently face consumer lawsuits, while calls for the platforms to be regulated similar to home lenders are coming from a range of stakeholders, including legal advocacy groups and mortgage bankers.