Levels of homeownership, a key source of wealth in the US, has dropped with every generation since the 1930s. The decline is especially stark among Millennials, now in their late 20s to early 40s.
Accion Venture Lab, a fintech investment firm that more typically invests in emerging markets, took a stake in savings startup Foyer to help US families buy their first homes.
The New York-based fintech company offers first home savings accounts, or FHSAs, modeled on a product introduced in Canada in 2023. Foyer’s version helps Americans dedicate a savings account for their down payment on a first home. The FHSAs generate 4% interest, plus up to a 5% match, contributed by Foyer – similar to a 401(k) retirement savings account. Unlike 401(k)s, contributions to FHSAs aren’t tax deductible at the federal level, but a dozen states allow deductions. Foyer also works with account holders to identify down payment assistance programs.
Foyer has signed up 10,000 customers since 2022. It makes money by connecting home buyers to real estate agents.
Accion Venture Lab joined Alpaca VC, Hometeam Ventures, Resilience VC and other investors in Foyer’s $6.2 million seed equity round.
“Achieving homeownership can transform lives,” said Accion’s Amee Parbhoo, calling it “a vital pathway to economic mobility, especially for marginalized groups historically excluded from wealth-building opportunities.”
Foyer is Accion Venture Lab’s sixth fintech investment in the US, out of more than 65 investments worldwide. Other US-based deals include Community Investment Management, a lender for other fintech firms; Self, which helps individuals build credit and savings; and Channel19, a financial provider for owners of refrigerated trucks.
