(Bloomberg) -- Mike Cagney, the former embattled chief executive officer of Social Finance Inc., is raising more than $100 million for his new startup Figure Technologies Inc. at a $1 billion valuation just less than two years after its founding, according to people familiar with the matter.
San Francisco-based Figure uses blockchain technology to provide home equity loans online in just a few days, with approval happening in minutes. The company made its first loan in 2018, and is on pace to provide more than $80 million in loans this month alone, according to one of these people, who asked not to be named because the details are private.
A spokesman for Figure declined to comment.
Cagney helped build SoFi into one of the largest refinancers of student loans. He resigned after several workplace controversies at the startup, including allegations of sexual misconduct and a toxic work environment at the company. Cagney in 2018 said he had consensual sexual relationships with female subordinates.
The funding round hasn’t yet closed, so the valuation and the amount could still change, according to these people. Previous investors in the firm include RPM Ventures, DST Global and Ribbit Capital, among others. In its previous round in February, the firm had a valuation of $380 million, according to data from PitchBook. Since then it landed a $1 billion line of credit from Jefferies and WSFS Financial Services. Excluding the line of credit, this new round of funding could more than double how much it has raised to date.
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