Pomp Joins Ex-Sofi Founder’s Figure Technologies Board After It Raises $103M In Funding Round
Figure Technologies, the blockchain consumer lender, has brought Anthony “Pomp” Pompliano on board and announced a $103 million fundraise.
Figure is planning to use the $103 million for expanding its blockchain-based lending products. The former CEO of internet-based consumer finance firm SoFi and the actual chief executive at Figure, Mike Cagney, said the Series C round of funding was mainly opportunistic.
“The company has plenty of cash from an execution standpoint,” he added.
Morgan Creek Came Up with the Round Idea
Cagney also added that Morgan Creek, for which Pompliano used to work, was the one pushing the idea of a round, and that Figure agreed to bring Pompliano on board and to develop other partnerships, including one with the Japanese bank MUFG. Figure’s total funding is $225 million after the raise. According to a company’s press release shared with us, Figure is valued at $1.2 billion.
Aside from Morgan Creek and MUFG, other participants at the round were:
- HCM Capital
- Digital Currency Group
- Ribbit Capital
- The Partners at DST Globa
- RPM Ventures
- + Others
Details weren’t given, only the size of the round being revealed last month, in a securities filing.
Pompliano Praises Figure for Becoming One of the Largest HELOC Originators in the US
Figure is known for offering a home equity line of credit (HELOC) product. It started earlier this year by giving mortgage and student loan refinance products. Ever since then, it has managed to originate about $1 billion in loans. $700 million of the $1 billion are HELOCs based on a blockchain. This is what Pompliano had to say about Figure’s evolution:
“Figure has grown from an idea approximately two years ago to become the fourth largest HELOC originator in the United States.”
Provenance Is the Foundation of the Lending Products Offered by Figure
Provenance is a 12 node operator distributed blockchain and the foundation of the lending products offered by Figure. According to the company, it reduces the work that has to be done with documents when it comes to loan origination, sales, and financing. As reported, the blockchain is helping Figure save over 130 basis points on originating HELOCs, which adds about $1,560 on a $120,000 loan. Pompliano said the business model at Figure is in alignment with the Morgan Creek’s thesis on fund investment, a thesis that says all commodities, stocks, currencies, and bonds are going to end up digitized.
“Currently, the DTCC settles approximately $2 quadrillion of transactions annually, but their technology is not equipped to settle these digital asset transactions. Figure has shown that the combination of numerous frontier technologies can significantly disrupt these markets,” he added.
Morgan Creek participated at the $65 million Figure’s Series B fund round from earlier this year too. Back in May 2019, Figure got a $1 billion uncommitted line of credit on Provenance, from WSFS Financial Corporation and Jefferies.