Figure, a blockchain-powered home equity loan company, has raised $65 million from a variety of venture capital and financial companies. This news comes via a TechCrunch report published earlier today.
Thirteen-month-old Figure has raised about a staggering $120 million. RPM Ventures and DST Global appear to have led this round, with DCG, Nimble Ventures, and Morgan Creek participating. Ribbit Capital and DCM participated in earlier rounds. The company currently has a valuation of about $365 million, and claims it has provided 1,500 home equity loans to date.
Figure was founded by Mike Cagney, co-founder and former CEO of SoFi, an online personal finance company that specializes in student loan origination. Under Cagney’s leadership, the company grew to a multi-billion dollar valuation, and what looks to be an eventual IPO, although SoFi CEO Anthony Noto said yesterday that they weren’t exploring an IPO this year.
However, Figure is targeting a very different demographic than SoFi, as Cagney explained to American Banker. Whereas SoFi targeted HENRYs (High Earners Not Rich Yet), Figure is targeting CLAREs (Cash Light And Rich in Equity). This demographic tends to older Americans who either own their home outright or a significant portion of equity in it. Still, the strategy that Cagney is employing is the exact same as the used with SoFi — offer only one product that is superior to other offerings, and then build out more financial services once a customer base is established.
Indeed, Cagney told American Banker that, “At the end of 2019, Figure should look like a robust financial platform that can meet the needs of our customers.” He noted that the company would begin to create offerings in wealth management space, as well as checking accounts and unsecured consumer loans.
If Cagney can deliver on the promise of the company’s new funding round and the hype surrounding him and his company, it would do wonders for a the space, as blockchain is at the heart of the company’s technological edge.