Knox Financial

About Knox Financial

Knox Financial, a fintech company headquartered in Boston, was established in 2018 by co-founders David Friedman and Spencer Taylor. The company operates as an investment property platform, designed to simplify rental property ownership for homeowners. Friedman, the CEO, brings over 15 years of experience in real estate technology, having previously founded and led Boston Logic, a software provider for real estate brokerages, which he sold in 2016. His personal experience of regretting the sale of a condo, which subsequently appreciated significantly, fueled the creation of Knox. Taylor, the COO, has a background in business development and product management, including a tenure at Boston Logic.

The company's primary clients are homeowners who are moving and wish to convert their previous residence into a passive income-generating asset. Knox's business model is centered on its "Frictionless Ownership Platform," which manages nearly all aspects of a rental property. This includes handling financing, accounting, tax documentation, insurance, property maintenance, and tenant sourcing and management. Revenue is generated by charging a percentage of the rental income. Specifically, Knox retains 10% of the rental income from properties on its platform and also charges origination fees for its loan products. The company has demonstrated significant growth, raising $5.13 million in a seed round in May 2020, followed by a $10 million Series A in April 2021, and a substantial $50 million in a Series B round in June 2022.

Knox offers a suite of products and services to optimize property investment returns. The platform uses an algorithm-based model for rental pricing and to project the rate of return over time. It provides comprehensive management services covering legal checks, rent collection, and maintenance. A key offering is the Knox Equity Access Program (KEAP), a mortgage product that allows homeowners to access capital based on their home's equity. This loan can then be used for a down payment on a new home or for repairs on the investment property. Further product variations include 'Knox Certainty,' which guarantees a lease at a set rate to help homeowners qualify for new mortgages, and 'Knox Peace of Mind,' which ensures rental income. In early 2023, Knox Financial was acquired by Doorstead.