When the winter storm blew through Texas earlier this year, hundreds of homeowners were faced with pricy, unexpected home repair costs. Once those repairs are complete, contractors typically bill the homeowner in one lump sum. Austin-based Hearth, however, aims to remove financial barriers for homeowners facing repair costs by allowing contractors to quote projects as monthly payments.
Hearth’s SaaS platform, which is used by more than 10,000 contractors, also offers financing solutions, payment collections, invoicing, insurance and more. The goal is to allow contractors to spend more time on their craft and less time managing their business.
Hearth announced Monday it raised a $23 million Series B round to further this goal and expand product offerings. This funding round was led by Human Capital with participation from The Chainsmokers, 8VC, Jay Levine, Suro Capital and Barry Sternlicht.
“Our work at Hearth is about translating the incredible amount of innovation in digital financial services into tools that are accessible and useful to the small to medium-sized contracting business,” Anthony Ghosn, CEO and co-founder of Hearth, said in a statement. “We were the first in the market to enable the SMB segment with financing and we’re looking to build on our momentum by innovating around the rest of the financial services stack.”
The recent funding will be used to provide contractors with credit cards, bank accounts and contract generation features within the next year, Ghosn told Built In.
The funding will also be used to hire additional staff. Hearth plans to double its team from 100 employees to 200 by the end of the year. The company is currently hiring for 20 open positions, including a data analyst, full-stack engineer and lead product designer. Hearth employees are located in both Austin and at its second office in San Francisco.
“We are excited to build what we expect will be an important systemic company in the home improvement space in Austin and contribute to the growing ecosystem of entrepreneurship and technical talent here,” Ghosn told Built In.
Founded in 2016, Hearth has raised $51 million in funding to date.