Stitched In: Announcing Our Investment into Nada

Category
Investments & Portfolio Updates
Written by
The Sweater Team
Published on
August 11, 2022

Last year, global fintech funding hit a record $131.5 billion—a 177% increase from the $49 billion raised in 2020 and more than 21% of all venture capital raised in 2021, according to the CB Insights State of Venture Report. There is a massive, growing demand for personal financial stability and security, and founders are responding with high-traction startups, spanning payments, embedded financial services, and, of course, alternative investing and personal finance.

So, after meeting with Nada co-founders John Green and Mauricio Delgado and digging into their revolutionary real estate finance, banking, and investing platform, we knew we had to stitch them in. We’re excited to be an investor in their $8.1 million seed round led by LiveOak Venture Partners along with Revolution’s Rise of the Rest Seed Fund, Capital Factory, 7BC Venture Capital, LFG Ventures, Badra Capital and Stonks Fund.

Making homeownership simple and accessible

Nada creates an avenue for people to invest in cities’ growing home equity markets with as little as $250. They call these index-like real estate investment opportunities “Cityfunds.” These Cityfunds allow investors to buy and sell fractions of cities through portfolios of fractional home equity investments ("Homeshares") and single-family rentals. Nada has already launched Cityfunds for Nashville, Tampa, Miami, Dallas, Austin, and Houston, with more on the way soon.

Nada mobile app Cityfunds screenshots

On the flip side, they offer homeowners a new way to unlock home equity through their Homeshares product. With Nada’s Homeshares, homeowners can trade in fractions of their home equity for cash, and even spend it on everyday items with the Nada debit card launching next year. This gives homeowners a new kind of flexibility in accessing home equity without the worry of paying back interest or accumulating debt.

Nada mobile app Homeshares screenshot

It’s a beautiful synergy for a real estate investing platform—provide homeowners liquidity and diversification options, while also unlocking inventory for investors interested in high-demand real estate markets.

Why we’re excited about this investment opportunity

As Nada’s platform reimagines this outdated ownership model, it’s opening a new kind of flexibility for homeowners and investors at a time when homeownership is in decline and interest rates are on the rise.

It’s hard for us not to be immediately on board with a fintech democratizing access to an antiquated system, but this also happens to be a $36 trillion market—the largest consumer asset class in the US, representing 68% of total wealth. So, the opportunity for Nada is massive.

And they’ve already demonstrated impressive growth with $1.5m in revenue in 2021, $2m raised across 6 Cityfunds, and 1.5k investors on their platform. While the democratization of the real estate asset class is becoming more competitive with a handful of new entrants, Nada is substantially further along than any direct competition driving value for residential real estate users through their three-tier financing, investing and banking model.

Looking ahead

We deeply understand the growing appetite of retail investors for alternative ways to invest and grow their wealth. As we each seek to provide more access and transparency across different financial asset classes (real estate and venture capital), we believe that many retail investors will look to diversify their portfolios with both Sweater and Nada.

And those in the Sweater community will soon get their first exclusive opportunity to invest in Nada’s next Cityfund officially approved by the SEC this week.

We’re thrilled to be a part of Nada’s journey to democratize the home equity market, and if you want to be a part of it, too, you can invest in Nada via the Sweater Cashmere Fund in our mobile app.

Join us

Start Shaping the Future

Access the world's most exclusive asset class with the Sweater app. Download Sweater and take your seat at the new VC table where you can invest in groundbreaking startups shaping the future.
Disclosure: Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectus contains this and other information about the Fund and can be obtained by calling 1-888-577-7987 or by visiting the Fund’s website at www.sweaterventures.com/cashmerefund. Please read the prospectus carefully before investing. All investments involve risks, and past performance is no guarantee of future results.