Hearth

Hearth is a vertical fintech / SaaS company that builds sales, payments and customer‑financing tools for home‑improvement contractors, aiming to help trades businesses win more jobs, increase average ticket size, and digitize invoices and collections[3][5].

High‑Level Overview

• Mission, investment‑firm style summary: Hearth’s mission is to empower America’s small business professionals in the trades by providing an all‑in‑one platform that combines estimating, invoicing, marketing and customer financing so contractors can grow revenue and run profitable, professional businesses[4][3].
  - Investment philosophy (interpreted for a product company): Hearth effectively acts as a platform that embeds a financial services layer into vertical SaaS — partnering with lender networks so contractors can offer point‑of‑sale financing without acting as a bank[1][5].
  - Key sectors: Home improvement / trades (roofing, plumbing, HVAC, remodeling), vertical SaaS, and embedded fintech for contractor services[3][1].
  - Impact on the startup / trades ecosystem: By digitizing sales workflows and offering integrated financing, Hearth lowers friction for homeowners to fund projects and helps small contractors scale professionally — which can reduce early business failure rates in the trades and unlock greater project volume and larger average ticket sizes across the sector[4][3].

Origin Story

• Founding and background: Hearth was founded in 2016 by Anthony Ghosn and Nikhil Pai to serve home‑improvement contractors; the company is headquartered in Austin, Texas with operations in San Francisco as well[3][1].
  - How the idea emerged: Founders built the product to address a persistent pain point in the trades: contractors losing jobs or selling smaller projects because customers couldn’t easily access financing and because sales and back‑office processes were fragmented[3][5].
  - Early traction / pivotal moments: Hearth grew its customer base into the tens of thousands of contractors, claims millions (or billions per some pages) in jobs funded through its financing network, and expanded its product from simple financing to an all‑in‑one suite including estimates, digital contracts, invoicing, marketing tools and payment collection[3][1][4].

Core Differentiators

• Embedded fintech + vertical SaaS: Hearth combines estimating/invoicing software with an integrated financing marketplace (multiple lender partners) so contractors can present one‑click financing inside digital quotes[1][3].
  - Contractor‑focused UX and workflow: Product is purpose‑built for trade sales processes (digital proposals, contract management, invoice automation, payment links) rather than generic SMB accounting tools[3][1].
  - Network effects through lender partnerships: Access to a multi‑lender network helps contractors increase close rates and average project size by making financing options readily available to customers at point of sale[1][5].
  - Growth and scale evidence: Public company pages cite 10k–30k+ contractor customers and large cumulative job funding volume, indicating product market fit in the trades vertical[3][4].
  - End‑to‑end value chain: From lead capture and estimates to financing and collections — Hearth aims to reduce friction across the full sales lifecycle for contractors[3][1].

Role in the Broader Tech Landscape

• Trend alignment: Hearth sits at the intersection of vertical SaaS and embedded fintech — a strong trend where industry‑specific software integrates financial products to boost monetization and customer value[1][3].
  - Why timing matters: The trades industry historically lagged in digitization; rising homeowner demand for flexible financing and contractors’ need to professionalize operations create a receptive market for an integrated digital platform[4][3].
  - Market forces in their favor: Large market size (home improvement is a multi‑hundred‑billion‑dollar market), under‑digitized operators, and lenders seeking distribution channels create tailwinds for a finance‑enabled vertical platform[5][3].
  - Ecosystem influence: By enabling more financed projects and standardized digital workflows, Hearth can shift dealer/contractor sales practices, influence lender distribution strategies, and set expectations for digital customer experiences in home improvement[1][4].

Quick Take & Future Outlook

• Near term: Expect continued expansion of lender partnerships, deeper product integrations (CRM, job management, marketing automation), and growth of contractor base as Hearth emphasizes retention and higher‑value features to increase ARPU[3][1].
  - Medium term trends to watch: Broader adoption of embedded finance across verticals, competition from other trade‑focused platforms or finance marketplaces, and potential moves into point‑of‑sale hardware or deeper job management could shape Hearth’s roadmap[1][2].
  - Potential outcomes: If Hearth sustains strong lender relationships and continues improving conversion and retention metrics for contractors, it can consolidate its position as the default fintech+SaaS platform for the trades and meaningfully raise standards for digital sales in home improvement[3][4].

Core hook tie‑back: Hearth’s advantage is combining vertical, workflow‑native software with an embedded financing marketplace — a productized bridge between discovering a contractor and enabling the funded project — which is precisely the type of integrated solution the under‑digitized home‑improvement market needs to scale.

Sources: Company site and team pages; industry/profile pages summarizing product, customers and lender network[3][5][1][4].