Global fintech and funding innovation ecosystem

Mike Cagney, Ex-SoFi Boss ‘We’re Dealing with a lot of Headwinds in Industry’, Slashes Funding Targets

Bloomberg | Lizette Chapman | Feb 6, 2023

Bloomberg Mike Cagney - Mike Cagney, Ex-SoFi Boss 'We're Dealing with a lot of Headwinds in Industry', Slashes Funding Targets

Image: Bloomberg

Figure is one of countless once-hot startups now suddenly forced to contend with an icy environment for venture capital, particularly in the world of crypto. 

  • Challenging times:  Two years ago, when investors’ fintech frenzy was at its peak, Cagney raised $200 million for Figure. The company at the time was valued at $3.2 billion, gaining it entrance into a rarified club of multibillion-dollar startups.
    • But recently, things have gotten tougher. In the last few months, several senior leaders have left Figure, including the president and chief financial officer; it scrapped an attempt to take its lending business public through a special purpose acquisition company; and executives slashed their targets on an ambitious fundraising effort.
    • The company, which builds financial products on a blockchain, is also seeking to spin off some product lines as it navigates a dramatic industry downturn.

See:  Market Downturns are a Great Time to Build a Startup, or are they?

  • The company is currently seeking to raise $100 million, according to people familiar with the matter who asked not to be identified because the discussions were private. That’s one-third the sum it initially planned. Figure is not in any serious deal talks at the moment, the people said, and the startup is likely to delay raising money rather than agree to a down round at a lower valuation.
  • Last month, in another setback to Figure’s endeavors to access more cash, the startup abandoned efforts to take its lending product public via a reverse merger with a mid-sized mortgage bank. The transaction was supposed to serve as a major milestone and strategic inflection point for the startup.

Mike Cagney, Former-CEO, SoFi:

We’re just dealing with a lot of headwinds in the industry right now. It’s a very hard market.

Continue to the full article --> here


NCFA Jan 2018 resize - Mike Cagney, Ex-SoFi Boss 'We're Dealing with a lot of Headwinds in Industry', Slashes Funding TargetsThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Mike Cagney, Ex-SoFi Boss 'We're Dealing with a lot of Headwinds in Industry', Slashes Funding TargetsFF Logo 400 v3 - Mike Cagney, Ex-SoFi Boss 'We're Dealing with a lot of Headwinds in Industry', Slashes Funding Targetscommunity social impact - Mike Cagney, Ex-SoFi Boss 'We're Dealing with a lot of Headwinds in Industry', Slashes Funding Targets

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - Mike Cagney, Ex-SoFi Boss 'We're Dealing with a lot of Headwinds in Industry', Slashes Funding Targets




 

Leave a Reply

Your email address will not be published. Required fields are marked *

twelve − four =