Figure Technologies, a San Francisco-based blockchain-based startup for providing loans against mortgage equity is close to raising $103 million in financing in a bid to enter the student loan market.
Figure Technologies is founded by form SoFi chief Mike Cagney, who was forced out of the company after allegation of sexual improprieties. Cagney set up Figure Technologies two years ago with his wife June Ou, previously SoFi's CTO.
Figure allows consumers to borrow against the equity in their homes without the paperwork-intensive, 45-day process traditional lenders require, running the entire process over its inhouse-built blockchain platform Provenance.
According to SEC filings, Figure has raised $58.8 million in a total equity offering of $103 million. The company previously raised $65 million in series B equity in February, bringing its total funding to more than $120 million. Investors include RPM Ventures and partners at DST Global, Ribbit Capital, DCM, DCG, Nimble Ventures, Morgan Creek and others.
The new financing will be used to propel Figure into the $1.4 trillion student loan market, competing more directly with former company SoFi. Figure intends to use the same process applied to the home equity business to refinance student debt, which it then securitises and sells.