According to a Bloomberg report, blockchain startup Figure Technologies has cut 20% of its staff despite being profitable and growing revenues. The rationale is to improve profitability in preparation for listing its lending business early next year. The CEO and founder of Figure is Mike Cagney, who co-founded SoFi.
Initially the company focused on home equity lines of credit or HELOCs, but it has since expanded its product base. It started offering HELOCs direct to consumers in an automated fashion to kickstart usage of the Provenance blockchain, a public chain founded by Figure, on which the mortgage transactions are logged. Unlike most public blockchains, access to most contracts is restricted. By the end of 2022 Figure had originated $5 billion in HELOCs and added another $900 million during the second quarter.
According to Cagney’s July letter to investors and partners, the company has generated $83.5 million in revenues during the first half and a $2.7 million adjusted profit. It expects a $2.5 billion valuation for LendCo when it goes public. Its last venture fundraising in 2021 was at a $3.2 billion valuation for the whole business, not just lending. According to the Provenance blockchain, the current valuation of Figure stock is $3.49 billion. To date the company has raised around $430 million in venture funding and another $1.3 billion plus in debt financing for the HELOCs.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
