- SoFi’s ex-CEO is looking for investors for the new company Figure Technologies.
- Figure builds financial products on blockchain and was valued at $3.2 billion during launch.
- Mike Cagney is looking to raise $100 million from investors for Figure.
Mike Cagney, the former CEO of loan giant SoFi, is seeking investors for Figure Technologies Inc., his most recent venture. As it navigates a catastrophic industry slump, the business which develops financial products on a blockchain is also looking to spin out some product lines.
According to reports, several key executives, including the president and chief financial officer, have left Figure in recent months. The company also abandoned plans to go public with its lending division through a special purpose acquisition company and management lowered its fundraising goals.
Meanwhile, the company is looking to raise $100 million, according to persons with knowledge of the situation who declined to use their names since the negotiations were private. According to the sources, Figure is not currently engaged in any meaningful negotiations, and the business is likely to postpone seeking funding rather than accept a down round at a lower valuation. In an interview, Cagney stated:
We’re just dealing with a lot of headwinds in the industry right now. It’s a very hard market.
Furthermore, a complaint claims that Cagney left Social Finance Inc. in 2017 after allegations of a “sexually charged workplace atmosphere.” Additionally, Cagney acknowledged having consenting sexual encounters with female employees. At the time, Cagney declared that he would not put up with abuse at SoFi and that he left the company to avoid “distraction from the fundamental objective.”
Despite the debacle, Cagney was able to swiftly secure funding for his subsequent endeavor. According to PitchBook data, Figure raised more than $400 million from investors, such as Peter Thiel’s Mithril Capital and crypto companies like Digital Currency Group.
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