Former SoFi Founder Raises $59 Million at Fintech Startup Figure Technologies, Seeking $44M More
Based in San Francisco, Figure gave a start to the funding on October 21st, managing to gain the support of 36 undisclosed investors, a filing with the US Securities and Exchange Commission (SEC) from last month says. The startup is looking to raise up to $100 million and is expected to do just so in a year, the same filing reports.
Figure Secured $1 Billion in Uncommitted Credit
The plan Figure has to raise over $100 million was valuated in August at $1 billion, Bloomberg reported. The startup was founded in January 2018 and has already raised up to $120 million from investors.
Only earlier in 2019, it has managed to get $65 million at a series B round that was led by DST Global partners and RPM Ventures, together with Ribbit Capital, Digital Currency Group, Morgan Creek and others. The latest news is that is has secured as much as $1 billion uncommitted credit, being backed by the investment banking company Jeffries and the financial services firm WSFS Institutional Services.
The Company Provides Services on Blockchain
At the moment, Figure is providing home equity loans through Provenance, its native blockchain. It claims to approve the loans in only 5 minutes and to provide funding in only 5 days.
Bloomberg reported Figure has already given approximately 1,500 home equity loans to consumers from 36 states. It expects to double the $1.5 million a day origination every few months. The company is also offering refinancing student loan and mortgage services, planning to launch a money account for saving, borrowing and spending.
Figure’s Financial Services Executed through Provenance
All financial services provided by Figure are executed through Provenance. The company has said that it has recently turned to blockchain technology when it comes to origination, sales and financing because it’s more secure, efficient and less costly.
Provenance offers the first on-chain securitization, which reduces costs, risks and provides other blockchain benefits.
Figure was founded by Mike Cagney and his wife, who also works at the company as a COO. The Cagneys used to work for SoFi as CEO and CTO but resigned after Mike Cagney has been accused of sexual harassment. The co-founders of the Figure project are ex-CEO for the Thiel Foundation Alana Ackerson, and Cynthia Chen, who was a partner of DHVC.