Fintech Investments

Ex-SoFi CEO Raising $25M For His Next FinTech Move

Mike Cagney, the SoFi founder who was ousted from the company three months ago after allegations of sexual harassment, is already working on his next move.

According to Recode, Cagney has recently been approaching investors about a new FinTech startup, looking to raise around $25 million.

While some of the initial money will come directly from Cagney, sources familiar with the matter said he has spoken to potential investors, such as Peter Thiel, along with other SoFi backers, including DCM Ventures and Renren. People also said Cagney has approached Wall Street banks and multiple FinTech investors for advice.

Cagney is starting the new company with his wife, June Ou, who was SoFi’s chief technology officer before she stepped down in September after her husband’s departure.

The company does not have a name yet, but Ou’s LinkedIn page says she will serve as the COO of a “#newCo.” Sources said the company is focused on home equity lines of credit (HELOC), and earlier this month Ou shared a job posting on Glassdoor for engineers.

“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 job 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.

Although Cagney hasn’t reached his $25 million goal yet, investors are likely to support his new endeavor after the success he had with SoFi, which is now worth almost $5 billion.


Featured PYMNTS Study:

More than 63 percent of merchant service providers (MSPs) want to overhaul their core payment processing systems so they can up their value-added services (VAS) game. It’s tough, though, since many of these systems date back to the pre-digital era. In the January 2020 Optimizing Merchant Services Playbook, PYMNTS unpacks what 200 MSPs say is key to delivering the VAS agenda that is critical to their success.