Figure Technologies, a new consumer finance company founded by former SoFi co-founder, Mike Cagney, just raised $103 million in Series C funding. Led by investors Morgan Creek Digital and MUFG Innovation Partners Co., this new backing brings the company’s total funding to more than $225 million at a valuation of $1.2 billion.
The San Francisco-headquartered company was co-founded with Cagney’s wife June Ou, who was previously CTO at SoFi and will serve as COO at Figure, along with Alana Ackerson, former CEO of The Thiel Foundation, and Cynthia Chen, a recent venture partner of Danhua Capital.
Figure uses its own blockchain technology, Provenance, to track and record data on home equity loans. The company’s first product was digitally processed home equity loans and mortgage refinancing for older customers who had their money tied up in their homes. The company, which has already originated more than $700 million in loans, also offers student loan refinancing and is exploring other verticals that may fit its platform, including including wealth management, unsecured consumer loans, and checking accounts—all offered through partner banks.
Their secret ingredient: it takes only minutes to get approved for most loans, and funds can be transferred to users in five days. Figure can refinance loans from $500 to $250,000 at an annual percentage rates of 5.99 percent—and borrowers can repay in five, seven, 10 or 15 years—even 20 years.
Earlier this year, Figure raised $120 million in equity funding from investors like Morgan Creek, Nimble, DST Global, and RPM Ventures. In May, Figure also secured up to $1 billion uncommitted asset-based funding on its private custom blockchain.
“This investment is going to give us the resources we need to further fuel our mission of leveraging blockchain to reinvent lending, borrowing and investing for consumers and the financial industry,” said Cagney in a recent statement, “both in the U.S. and abroad.”
Cagney, who stepped down as CEO of SoFi in 2017 following allegations of sexual misconduct at the company, started Figure shortly after with his specific, consumer finance model in place.
The company recently added more executives to its team, including Tina McNulty as chief communications officer, C.D. Davies, as head of Lending, Tony Morosini as vice president of Banking and Payments; Anthony Pompliano, co-founder and partner at Morgan Creek Digital, also joined Figure’s board.