The former chief executive officer of San Francisco-based Social Finance Inc. — or SoFi — is raising approximately $100 million for his new venture Figure Technologies Inc., a move that has catapulted the upstart S.F. fintech to a $1 billion valuation in less than two years, Bloomberg reported.
The funding round hasn’t closed and specific new investors have not yet been named. The valuation and the amounts are also subject to change.
Figure, which started in 2018, uses blockchain technology to provide home equity loans online and is on pace to provide more than $80 million in loans this month alone, according to Bloomberg. Figure’s previous investors include RPM Ventures, DST Global and Ribbit Capital. In a February, the company had a valuation of $380 million, Bloomberg reported, and since then it landed a $1 billion line of credit from Jefferies and WSFS Financial Services.
Mike Cagney stepped down in 2017 from his CEO role at SoFi — a student loan refinancing firm — amid an investigation into inappropriate workplace conduct. In an interview with The Wall Street Journal last year, Cagney admitted that his exit was in part due to an affair with a subordinate. Cagney founded SoFi in 2011.
The San Francisco Business Times reported last year that just months after Cagney’s resignation, the entrepreneur had started Figure with his wife June Ou as co-founder and chief technology officer, the same role she previously held at SoFi. But even after the Bay Area’s own #metoo movement ousted executives like Uber’s Travis Kalanick, Binary Capital co-founder Justin Caldbeck, former 500 Startups CEO Dave McClure — Cagney’s new startup has been embraced by investors.