Mike Cagney’s Figure Launches Black-Check Firm to Raise $250 Million

Figure Technologies Inc. is making plans to launch a special purpose acquisition company (SPAC). Dubbed Figure Acquisition Corp.I, the blank-check firm will enable Figure to raise $250 million, according to a Bloomberg report on February 12, 2021.

Figure’s SPAC Ambition 

Figure Technologies Inc., a San Francisco-based company that issues mortgages and loans via its proprietary Provenance blockchain platform, has submitted an application to the U.S. Securities and Exchange Commission (SEC) to launch a special purpose acquisition company (SPAC). 

For the uninitiated, a SPAC is simply a blank-check corporation that focuses on enabling other firms to go public without having to go through the stress and uncertainties of an initial public offering (IPO). 

Per sources close to the matter, Figure’s SPAC project is sponsored by its affiliate named Fintech Acquisition Corp., a U.S-based blank-check company that raised $218million in December 2020. 

Mortgages on the Blockchain

Founded in 2018,  Figure Technologies, Inc. functions as a financial technology firm in the home equity and distributed ledger technology space. The firm issues mortgages, loans, consumer financial solutions for home improvement, debt consolidation, and more.

Since its launch, Figure Technologies has raised more than $220 million in funding from corporate investors, including DST Global, RPM Ventures, Nimble Ventures and Morgan Creek, among others.

As stated in its filing with the SEC, Figure plans to identify and acquire only fintech firms that have a huge growth potential amongst other impressive characters.

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

As reported by BTCManager earlier in January 2021, Figure Technologies obtained a $100 million loan from JPMorgan through its subsidiary, Figure Lending,  for its conforming and jumbo mortgages, making it clear that the funds will enable it to strengthen its financing facility and make it easier for its provenance blockchain platform to facilitate end-to-end financing of loans.

“It paves the way for the first securitization on-chain, which will demonstrate the massive cost savings, risk reduction, and liquidity benefits blockchain delivers,” declared Figure Technologies CEO, Mike Cagney at the time.

In the same vein, last May, the Bank of Russia announced plans to launch a blockchain-based mortgage system on its Masterchain DLT platform.