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Blockchain Lending Firm Figure Sets Up Blank-Check Firm For $250 Million Fundraise

Blockchain mortgage lender Figure is launching a special purpose acquisition company (SPAC) in an effort to raise $250 million, CoinDesk reported on Friday (Feb. 12).

Figure co-founder and CEO Michael Cagney filed a prospectus with the Securities and Exchange Commission (SEC) to launch a blank check firm called Figure Acquisition Corp.

The blockchain lender headquartered in Silicon Valley uses its own blockchain called Provenance to partially automate the issuance of mortgages and loans. 

Founded in 2018, the startup has already raised $220 million from Ribbit Management, DST Capital, RPM Ventures, Nimble Ventures and Morgan Creek, according to the filing.

Cagney, a former SoFi executive, would become the chairman of the board for the newly formed entity. According to Figure’s SEC filing, the startup anticipates targeting firms with “compelling growth potential.” 

“We expect to differentiate ourselves through our … capacity to leverage a proven and scaled blockchain platform which drives operational, technological and marketing improvements to maximize the growth potential of businesses,” the prospectus said.

There is no mention in the filing that Figure Technologies had any intention of going public via the newly-formed SPAC.

A SPAC, a type of blank-check company, is created specifically to finance a merger or acquisition opportunity within a predetermined time frame. Some 248 SPACs went public last year and notched a total of $81 billion.

On Thursday (Feb. 11), flying taxi developer Joby Aviation got an infusion of funding from a SPAC formed by LinkedIn founder Reid Hoffman and Zynga founder Mark Pincus. A merger would value Joby Aviation at $5.7 billion.

Colin Kaepernick will be the co-chair of his newly-formed SPAC called Mission Advancement, which is looking to invest in consumer businesses in the environmental, social, and governance sectors, with enterprise values of over $1 billion. 

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