SoFi founder Mike Cagney is again with a brand new startup and $50 million in funding • TechCrunch


Mike Cagney, who was ousted final summer season from the lending firm he based, is again with a brand new startup and an entire lot of funding from at the very least one in all his earlier traders.

In response to a new report in Bloomberg, Cagney, who earlier this yr fashioned a brand new lending startup referred to as Figure, has raised $50 million to develop the corporate, which plans to make use of the blockchain to facilitate mortgage approvals in minutes as an alternative of days.

In response to the corporate’s web site, its lending merchandise will embody house fairness strains of credit score, house enchancment loans and residential buy-lease again choices for retirement.

The spherical was led by DCM Ventures and Ribbit Capital and included participation from Mithril Capital Administration, Cagney confirmed to Bloomberg.

Ribbit Capital in Palo Alto, Calif., has been main investments on the earth of fintech and digital currencies since its founding practically six years in the past. Others of its many bets embody the net client lending firm Affirm, and Level, a startup that buys fairness in U.S. properties.

Mithril, co-founded by Peter Thiel, prides itself on funding corporations that take time to construct, with funds which have longer investing timelines than do most conventional enterprise automobiles.

The cross-border agency DCM Ventures, in the meantime, is probably essentially the most attention-grabbing participant on this spherical. The rationale: Again in 2012, DCM started investing in Social Finance, or SoFi, the corporate that Cagney based beforehand.

It isn’t unusual for VCs to put money into founders with whom they’ve labored earlier than, in fact. And SoFi has grown by leaps and bounds since its August 2011 launch. Although it initially targeted on refinancing pupil loans, at this time it offers private and mortgage loans and wealth administration providers, and it seems to be pushing additional into different bank-like providers.

However Cagney was compelled out of the corporate final summer season, not lengthy after a sexual harassment lawsuit was filed by a former worker who claimed he’d witnessed feminine workers being harassed by managers and was fired after he reported it.

One other former employer who’d been stationed at SoFi’s workplace in Healdsburg, Calif., instructed The New York Instances that her work atmosphere had been akin to a “frat house,” with workers “having intercourse of their automobiles and within the car parking zone.” That very same story, based mostly on conversations with 30 then-current and former workers, additionally reported that Cagney himself had raised questions with employees due to his personal conduct, together with bragging about his sexual conquests.

Evidently, DCM and Determine’s different backers had been in a position to brush apart considerations about something of the kind occurring once more at Determine. (We’ve reached out to Cagney and Determine’s traders for extra info.)

Workers are additionally flocking for Determine with the assumption, ostensibly, that Cagney is well-positioned to create one other monetary providers juggernaut. In response to Bloomberg, the corporate has already quietly assembled a workforce of 56 folks. Amongst its new hires is the previous chief danger officer of LendingHome, Cynthia Chen, and the previous chief authorized counsel of PeerStreet, Sara Priola.



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