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Figure Technologies is founded by form SoFi chief Mike Cagney two years back.
Fremont, CA: San Francisco-based fintech startup Figure Technologies raised USD 103 million in a Series C round of financing. The new funding comes shortly after the company raised USD 1 billion uncommitted asset-based financing facility in May, and another USD 102 million in February earlier this year. The company attracted funds from a gaggle of investors, including RPM Ventures, partners at DST Global, Ribbit Capital, DCM, DCG, Nimble Ventures, and Morgan Creek.
Figure Technologies is founded by form SoFi chief Mike Cagney, who was forced out of the company after an allegation of sexual improprieties. Cagney started Figure Technologies two years back. The company started by providing loans to elder groups of people who had all their money invested in homes. The company more recently began to chase after a demographic that Cagney knows well through SoFi, which is younger people looking to refinance their student loans. The new financing will be used to propel Figure into the USD 1.4 trillion student loan market, competing more directly with former company SoFi. Figure intends to use the same process applied to the home equity business to refinance student debt, which then securitizes and sells.
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Cagney launched Figure with his wife, June Ou. Ou currently serves as the COO of Figure, and Ou was previously the CTO of SoFi. Alana Aldag Ackerson and Cynthia Chen are also the founders of Figure. Ackerson previously worked as the CEO of the Thiel Foundation, and Chen was a venture partner at DHVC (Danhua Capital). All of Figure’s financial services business is executed entirely on its blockchain, Provenance, which further has a native token, Hash, that’s used to both access the blockchain and to memorialize off-chain exchange of fiat currency.
According to the company's website, it plans to introduce a money market product very soon. Figure has also talked in the past of expanding into other lines of business, including wealth management, unsecured consumer loans, and checking accounts, all offered through partner banks. Meanwhile, SoFi has also been expanding beyond student loan refinancing under the leadership of current CEO Anthony Noto. Earlier this year, SoFi made fractional share buying and exchange-traded funds available to its users. It also launched a mobile-first cash management account.
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