Blockchain

SoFi Founder Starts New Blockchain Loan Startup

SoFi Founder and former CEO Mike Cagney is getting ready to launch a startup offering home equity loans.

According to Bloomberg, Cagney has raised $50 million for San Francisco-based Figure, which will use blockchain to expedite loan approvals in minutes rather than days.

Sources say that two global banks have agreed to finance the loans, while multiple firms have agreed to purchase them.

The investment round was led by Ribbit Capital and DCM Ventures, with the participation of other investors including Peter Thiel’s Mithril Capital Management.

At the beginning of the year, it was reported that Cagney was approaching investors about a new FinTech startup, looking to raise around $25 million.

Cagney founded Social Finance, which has become one of Silicon Valley’s more prominent alternative lenders. It is currently valued at more than $4 billion and has raised nearly $2 billion from investors.

He was ousted from the company last year due to allegations of sexual harassment, as well as accusations by former employees that he had inappropriate relationships with members of SoFi’s younger female staff.

Cagney's wife, June Ou, who served as SoFi's chief technology officer, left her position a few months later. She is working with Cagney on this new endeavor, and in January she even included a job post looking for engineers on LinkedIn:

“We are launching a new FinTech-focused company in the credit enablement space with the mission of leveraging blockchain, AI and advanced analytics to unlock new access points for consumer credit products that can transform the financial lives of our users,” said the listing. “We are a group of passionate innovators and serial entrepreneurs with a proven track record of creating billions of dollars in value in the FinTech space.”

The company will be based in downtown San Francisco; however, the engineering jobs are based in Bozeman, Montana, near where some of the SoFi engineering team is located.

Figure currently has about 56 employees, including the former Chief Risk Officer of LendingHome, Cynthia Chen, and former PeerStreet Chief Legal Counsel Sara Priola.

Figure and Cagney confirmed the financing details, and the startup plans to begin lending in the third quarter.

——————————

LIVE PYMNTS TV OCTOBER SERIES: POWERING THE DIGITAL SHIFT – B2B PAYMENTS 2021 

Banks, corporates and even regulators now recognize the imperative to modernize — not just digitize —the infrastructures and workflows that move money and data between businesses domestically and cross-border.

Together with Visa, PYMNTS invites you to a month-long series of livestreamed programs on these issues as they reshape B2B payments. Masters of modernization share insights and answer questions during a mix of intimate fireside chats and vibrant virtual roundtables.

TRENDING RIGHT NOW