Mortgage

Former SoFi CEO Founds Clean Examine Firm to Increase $ 250 Million

Mike Cagney's blockchain lending startup, Figure Technologies, plans to raise $ 250 million through a new blank check company, according to an SEC filing.

The special purpose vehicle [SPAC] is called Figure Acquisition Corp. I and is sponsored by Fintech Acquisition LLC, a subsidiary of Figure. Ellington Management "has a significant economic interest" in the fintech company and "has the right to nominate a director for election to our board of directors".

Figure, a mortgage company, has not yet selected a business combination target and has not yet initiated ‚Äúsubstantive discussions‚ÄĚ with any company. A figure representative declined to comment beyond the information.

Mike Cagney.

David Paul Morris / Bloomberg

Founded in San Francisco in 2018, Figure has raised more than $ 220 million from early-stage and corporate venture investors, including Ribbit Management, the partners of DST Global, RPM Ventures, Nimble Ventures, and Morgan Creek.

SPACs aim to merge with private companies and bring them public while avoiding the uncertainty of going public. The vehicles have become a popular way for venture-backed startups to get listed in the public markets.

After a record year in 2020, SPACs continued to raise capital in the new year. Around 155 U.S. vehicles went public in the first six weeks of 2021, raising a total of $ 46 billion, according to Bloomberg data.

Read more: Former SoFi CEO Cagney sells the largest heloc-backed bond in ten years

Figure has set up a platform on which mortgage loans and other consumer debts can be drawn, taken out, serviced and financed via the connected blockchain Provenance. In September, Cagney told Bloomberg that digitally drawing and lending the loans in blockchain makes the process less cumbersome for borrowers than for traditional lending and more transparent for capital market investors.

Cagney helped make SoFi one of the largest student loan refinancers. He resigned after several controversies in the company workplace, including allegations of sexual misconduct and a toxic work environment at the company.

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