Cuban-backed billionaire Mark Dave said Monday he would go public through a merger with a blank check company sponsored by investment firm Victory Park Capital, which estimates the bank’s application at $ 4 billion.
Launched in 201
Companies like Dave are rushing to take advantage of the boom in demand for online banking services due to the COVID-19 pandemic.
The launch of financial services Chime has also held preliminary talks with investment banks to launch a stock exchange, which could cost it more than $ 30 billion, Reuters reported in March.
The deal with a special acquisition company (SPAC), VPC Impact Acquisition Holdings III Inc (VPCC.N), involves a $ 210 million investment led by Tiger Global Management, with additional participation from Wellington Management and Corbin Capital Partners.
Dave’s other investors include Norwest, Section 32, Capital One, The Kraft Group, SV Angel and The Chernin Group.
SPAC is a blank check company that seeks to merge with a private company, a type of transaction that has become very common in the last year.
The merger, which comes after a lull in deals due to weak investor appetite and greater regulatory scrutiny, is expected to end later this year.
Centerview Partners LLC serves as Dave’s exclusive financial advisor. Citigroup and Jefferies have served as VPCC capital markets advisors and investment co-location agents. (https://bit.ly/3fUUhd8)
Our standards: Thomson Reuters’ principles of trust.