Mark Kuban-sponsored banking app Dave will start buying and selling on Nasdaq after the SPAC merger is full
Dave Banking App
Los Angeles-based banking app Dave began trading on Nasdaq Thursday and was one of the first companies to complete a SPAC merger and go public in 2022. With an opening price of $ 8.27, the fintech’s implied market cap was approximately $ 3.1 billion on SPAC research data. Dave stock was up to 8% lower in early low-volume trading, with market cap falling below the $ 3 billion mark.
Dave ranked 26th on the CNBC Disruptor 50 2020 list.
Victory Park Capital, a global investment firm headquartered in Chicago, has a long track record of debt and equity financing transactions in the fintech space and has been a longtime investor in Dave. The company most recently 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 – was designed to eliminate many of the features that customers of old banks hate. The company started with overdraft fees. For a membership fee of $ 1 per month, users can access checking accounts and up to $ 100 overdraft protection with no fees or interest. Members who sign up for a direct deposit also receive automated budgeting and the ability to build their creditworthiness 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 gig workers make hundreds of millions of dollars off sideline jobs through its sharing economy job board, Side Hustle. According to the prospectus, the company’s third-quarter revenue rose 30 percent 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 the final market debut. Wellington Management and Corbin Capital Partners also take part.
Funds raised through U.S. SPACs reached a record $ 162 billion in 2021, almost doubling its spending of $ 83.4 billion in 2020, according to SPAC Research data. 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 to the increasingly competitive deal-making environment.
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