Blockchain Startup Figure Technologies Gets Investment Boost
Figure Technologies is a blockchain technology startup that specializes in loan origination, equity management, and payments. It has received an influx of funding recently. The company raised a $200 million Series D round in May 2021. To expand its blockchain initiatives, Figure Technologies also entered a partnership with one of the largest asset management firms in the world: Apollo Global Management.
Founded in 2018, the San Francisco-based company already has a valuation of over $3.2 billion. CEO Mike Cagney is the founder and former CEO of the online personal lending platform SoFi. He created Figure Technologies to leverage the impact of blockchain on the payments industry.
Overall, Figure Technologies has raised $1.6 billion over 10 funding rounds. The company began its lending service business by focusing on home equity lines of credit. It then expanded into mortgage refinancing, student loan refinancing, and personal loans.
Figure Technologies Intends Further Scaling with Round D
The $200 million Series D round has provided Figure Technologies with the resources to further scale its business. The round was led by 10T Holdings, a growth equity firm that invests in digital currency startups, and Morgan Creek Digital, a hedge fund specializing in blockchain and digital asset investments.
“Morgan Creek Digital is excited to support Figure Technologies because they not only built a world class lending business, but they also built a unique blockchain platform with the financial services industry in mind,” says Jachin Saitly, a General Partner.
Figure Technologies uses the Provenance blockchain, a public, decentralized blockchain created by the Provenance Blockchain Foundation, for financial services. The Provenance blockchain has many competitive advantages in the blockchain marketplace, including that it is open-source and permissionless. Because it was built to support the financial services industry, there is an emphasis on transparency.
“Provenance is a new set of financial rails that is faster and less expensive than alternative solutions and is on the precipice of becoming adopted by major financial institutions. This poses a significant opportunity to unlock value in many ways,” describes Jachin Saitly.
Dan Tapiero, a General Partner at 10T Holdings, echoed this sentiment. “The speed, transparency, finality, and cost-efficiency of Provenance blockchain will be an improvement to the systems and framework that exist in the traditional financial world,” he commented.
Collaboration on Blockchain Initiatives
In July, Figure Technologies announced that it had entered into an agreement with Apollo to collaborate on certain blockchain initiatives. The collaboration with Apollo is a major boost for Figure Technologies. Apollo has over $400 billion in assets under management (AUM) and a large team of investment professionals.
As part of the collaboration, certain funds affiliated with Apollo will work to advance the practical applications of the Provenance blockchain. Since the Provenance blockchain is specifically tailored to serve the needs of the finance industry, it is an advantageous partnership for Apollo in many ways. Like many large institutional players in the finance industry, Apollo is trying to focus more on fintech innovation. Apollo has been testing and applying new fintech innovations to its investment platform to serve the investment goals of its global customer base more efficiently.
“We’re thrilled to be backed by these top-tier institutions and our recently announced collaboration with Apollo will be an invaluable addition as we expand our business further,” said Mike Cagney, the CEO of Figure Technologies.
Solutions Designed for Wide Array of Customers
Figure Technologies designed its blockchain solutions to help individuals and organizations alike. One product, Figure Pay, allows consumers to easily transfer money with instant settlement for payments. Another product, Figure Wallet, connects directly with exchanges. Users can buy and sell digital assets, including Hash, private funds, private equity, and more unique investments. The blockchain stores digital tokens with unique addresses.
The company has had success with mortgage refinancing, personal loans, and home equity lines of credit services. In August, Figure Technologies announced a partnership with Sagent Partners on mortgage services using blockchain technology. Sagent is a fintech company that focuses on providing mortgage and consumer loan services. Figure Technologies hopes it can leverage the Provenance blockchain platform to scale mortgage assets and reduce costs for customers.
Shortly before its partnership with Sagent was announced, Figure Technologies announced a merger with Homebridge Financial Services, a major mortgage originator company. Homebridge originates $25 billion per year of loans to over 150,000 customers. The Provenance blockchain will help Homebridge fulfill loans at record speeds and will give Figure Technologies the ability to introduce their products Homebridge’s large customer base.