Boston-based Knox Financial, a fintech company, has raised $3 million in seed funding. Greycroft led the round with participation from Pillar VC.
BOSTON, January 28, 2020 —Knox Financial, a fintech company offering homeowners a smart and frictionless way to build wealth, today announced that it has raised $3M in seed capital. The round was led by Greycroft, with participation from Pillar VC.
“When homeowners are ready to move, they traditionally sell their home, and lots of them look back at properties they used to own and realize that they’re now worth multiples more,” said David Friedman, CEO and co-founder of Knox. “You have a financial advisor for your stocks and bonds. You have Knox for your real estate. Knox offers homeowners a hands-off, technology-driven way of building wealth through their homes long after they’ve moved out.“
Once a property is on the Knox Frictionless Ownership platform, the homeowner receives all of the benefits of rental property wealth creation and cash flow, without having to do any of the work. Knox customers simply receive a distribution of the net profit from their rental property each quarter, and let Knox handle the details of turning their homes into rental properties and maximizing the investment return. Knox is for homeowners who are ready to move, as well as landlords who want to see better performance from their investments.
“In a short amount of time, Knox has put together a world-class team, and demonstrated that there is a substantial market of homeowners who want to turn their homes into investments,” said Will Szczerbiak, Principal at Greycroft. “The technology Knox has developed allows the company to quickly analyze whether a single-family home, condo, or multi-family is a good investment, aligned with the owner’s financial goals. Knox is changing how homeowners create wealth and we’re excited to be on their team.”
The Knox platform enables the company to automate many aspects of generating passive income through rental properties, including financing and refinancing, accounting, tax, legal, insurance, tenant sourcing and communication, and property maintenance. Further, Knox’s proprietary rental pricing and projection model understands the value, mortgage data, taxes, insurance costs, and rental market trends related to each home, which enables the company to quickly and accurately calculate the cost to operate a home as an investment property and the net cash flow and investment rate of return a property will produce over time. In a matter of seconds, Knox projects how a home will perform as an investment, and shares that information with the property’s owner.
“Immediately after launching our pilot in Boston less than one year ago, local homeowners who were ready to move started putting their homes in the Knox Frictionless Ownership platform instead of selling,” said Spencer Taylor, COO and co-founder of Knox. “Many landlords have also realized that their portfolios would perform better in the Knox program. With the support of our new investors, we look forward to expanding into new markets in 2020.”
To learn more about Knox, including how homeowners are building wealth through frictionless ownership, visit https://knoxfinancial.com/case-studies/.
About Knox Financial
Knox is the smart and frictionless way to build wealth through investment properties. To learn more, visit www.knoxfinancial.com.