Los Angeles-based banking app Dave went public on Nasdaq Thursday, making it one of...
Los Angeles-based banking app Dave went public on Nasdaq Thursday, making it one of the first companies to merge with SPAC and go public in 2022. About $ 3 billion.
The fintech company merged with VPC Impact Acquisition Holdings III, a blank check formation from Chicago-based global investment firm Victory Park Capital.
Los Angeles-based banking app Dave went public on Nasdaq Thursday and was one of the first companies to merge with SPAC and go public in 2022.
With an opening price of $ 8.27, the fintech's implied share of market capitalization was rough. $ 3.1 billion, according to data from SPAC Research. with a market cap below the $ 3 billion level.
Dave was ranked 26th on the CNBC Disruptor 50 2020 list. Victory Park Capital, a Chicago-based global investment firm, has a long history of debt and equity financing transactions in the fintech space and is a longtime investor.
It last provided the company with a $ 100 million line of credit in January 2021. VPCC completed its IPO in March 2021.
Dave, short for the hero in the David vs. Goliath story, is supposed to do many of the features that customers can't stand. on old banks. The company started with overdraft fees.
For a membership fee of $ 1 per month, users can access checking accounts for free and up to $ 100 overdraft protection with no fees or interest.
Members who sign up for a direct deposit also receive an automated budget and the ability to improve their credit score by reporting rental and ancillary charge payments to credit bureaus.
The company says it has helped millions of customers avoid overdraft fees through its ExtraCash feature, and has helped temporary workers make hundreds of millions of dollars doing side jobs through its Side Hustle sharing economy job board.
According to the prospectus, the company's third-quarter revenue rose 30% from $ 120 million in 2020 to approximately $ 158 million in 2021.
The transaction included a $ 210 million private placement led by Tiger Global Management.
So-called PIPE funding is a mechanism for companies to raise capital from a select group of investors that enables them to make their final debut in the market.
Wellington Management and Corbin Capital Partners also take part. Funds raised through U.SPAC totaled a record $ 162 billion in 2021, which, according to data from SPAC Research, doubled emissions by $ 83.4 billion in 2020.
While the SPAC market was brand new in 2021, it has cooled off in the face of a myriad of challenges ranging from regulatory pressures to the prospect of higher interest rates and the ever-expanding trading environment.
