Nada Raises $10M In Series A Funding Led By Interlock Partners

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Nada, a Dallas-based fintech platform specializing in home equity access for homeowners and investors, closed a $10 million Series A funding round. The round was led by Interlock Partners, with participation from LiveOak Ventures and Riverwalk Capital Partners. This equity financing strengthens Nada’s institutional backing, complemented by an expanded venture debt facility from Nomura Strategic Ventures. It supports scaling the Home Equity Agreement (HEA) product and positions the company for its first securitization in 2026.

Nada was co-founded in 2019 by John Green (current COO), Mauricio Delgado, and Felipe Miranda in Dallas, Texas, initially as a real estate tech platform offering investment, finance, title, and insurance services. Early traction came from its “nada” fee model, reimbursing seller commissions on platform purchases, leading to a 280% revenue jump to $600,000 in 2020 despite the pandemic. By 2021, Nada pivoted to home equity innovation, launching Cityfunds: SEC qualified funds providing indexed exposure to city specific residential markets (e.g., Dallas, Austin, Miami).

Under new CEO Tore Steen (appointed June 2024, ex-CrowdStreet co-founder), the focus sharpened on HEAs and Homeshares. Steen’s board tenure informed this shift, emphasizing scalable, institutional grade structures. Today, Nada manages nearly $500 million in AUM, with products like the real estate backed debit card enabling equity fueled spending. The platform’s app simplifies investing, akin to stock trading, with over 3,000 individual backers alongside VCs.

Nada’s funding reflects a bootstrapped to scale journey, blending equity for innovation with debt for leverage:

Pre Seed (2020): $3.4 million via SAFE notes from syndicates, funding core platform amid COVID driven remote closings.
Seed Crowdfund (July 2021): $2 million on Republic, closing in under a week; valued at $12 million cap, enabling Cityfunds JV with Republic Real Estate.
Seed (July 2022): $8.1 million led by LiveOak, with Revolution, Capital Factory, 7BC, Sweater Ventures, LFG, Badra, and Stonks. Funds expanded to six cities, grew staff, and launched secondary trading/mobile app. Board additions: Krishna Srinivasan (LiveOak) and Jesse Stein (Everyrealm).
Seed Extension (June 2024): Undisclosed amount (est. $5-9 million) from LiveOak and 7BC, coinciding with Steen’s CEO role. Bolstered infrastructure for complex products.
Debt Facilities:
- October 2024: $25 million conventional debt from Kawa Capital (first institutional investment), leveraging Cityfunds for 2024 AUM acceleration.
- February 2025: Venture debt from Nomura’s NSV Fund 1, supporting HEA innovation and $10 million acquisition for U.S. Home Equity Fund I (132 agreements).
Series A (December 2025): $10 million equity, as detailed, with Nomura debt expansion for hybrid capital stack.

Aggregated data from PitchBook lists 36 investors, including Attach Capital, Bay Wharf Capital, Cashmere Fund, and CRECI Ventures. Total raised: $40.9 million, with equity comprising ~70%.

In Depth Investor Analysis

Investors align with Nada’s Texas roots and fintech real estate nexus:

Interlock Partners: Specializes in Series A/B for proptech; portfolio includes lending platforms. Lead role provides strategic guidance on securitization.
LiveOak Ventures: $500 million under management; Texas-focused, with exits like DISCO (NYSE: LAW). Their multi round commitment (seed to Series A) validates Nada’s 332% GP/CAC improvement since 2019.
Riverwalk Capital Partners: Targets $5-15 million checks in fintech RWAs; new here, potentially bridging to Midwest expansion.
Nomura Strategic Ventures: Global arm of Nomura (30+ countries); debt focus aids non-dilutive scaling, with NSV Fund 1 backing U.S. innovation.
Broader Syndicate: Revolution’s Rise of the Rest promotes underrepresented founders; Capital Factory (Austin incubator) offers ecosystem access. Diversity includes hedge funds (Nomura) and crypto adjacent (LFG Ventures).

This cap table balances growth equity with debt, minimizing founder dilution while signaling Series B readiness.

Strategic Deployment and Milestones

Funds target three pillars:

HEA Scaling: From 14 to 20+ states by mid 2026; integrate with banking for seamless equity to cash conversion.
Investor Products: Enhance Homeshares for secondary liquidity; launch U.S. Home Equity Fund II post securitization.
Operations: Compliance tech for SEC filings; marketing to boost LTV/CAC (projected 5-year gross profit per user).

Key 2025 milestones: Benzinga Global Fintech Award (Best Alternative Investment Platform); $10 million HEA portfolio acquisition; app updates for ETF-like HEI trading. Projections: 2025 revenue $10-15 million (up from 2023’s $5 million unaudited non-GAAP), with LTV at $25,000 over 5 years.

Broader Market Dynamics

The HEI market, valued at $15 billion in 2024, grows amid 40 million over equitied households facing 7%+ mortgage rates. Nada’s debt free model contrasts traditional HELOCs (avg. 9% APR), appealing to 60% of homeowners avoiding new debt. Regulatory tailwinds include SEC’s 2023 fractional investment greenlights, though state licensing varies.

Competitive Deep Dive:

Unison: $1.5 billion originated; stronger in buyback predictability but higher homeowner caps (15% equity share).
Point/Hometap: $500 million+ combined; focus on short term (10-year) terms vs. Nada’s perpetual shares.
Fractional Peers (Groundfloor, Ark7): $200 million+ AUM; yield 7-10% but debt heavy, exposing to default risk (Nada’s equity model mitigates via appreciation sharing).

Nada’s edge: Lowest entry ($250), city thematic diversification, and integrated debit card (reimburses fees on refi/purchase).

Potential Challenges and Forward Outlook

Challenges:

Economic: 2026 recession risks could stall home sales, capping HEA originations (mitigated by diversified funds).
Regulatory: SEC scrutiny on RWA disclosures; state by state expansion demands $2-3 million in compliance.
Execution: Securitization success hinges on 8-12% IRR delivery; competition from banks entering HEI space.

With $40 million+ raised, Nada eyes $100 million AUM by 2027, potentially via SPAC or acquisition (e.g., by Rocket Mortgage). Steen’s track record suggests 10x growth potential, making this round a pivotal inflection.

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