Cryptocurrency exchange FTX has provided $100m in convertible note financing for US-based banking services provider Dave through its recently launched corporate venturing vehicle, FTX Ventures.
Founded in 2016, Dave has created a mobile-based banking platform designed to avoidslegacy bank issues such as overdraft fees while providing overdraft protection, financial advice and credit building services.
The investment is set to boost Dave’s balance sheet and give it the resources to drive its growth strategy and make future investments. It has also formed a partnership with FTX’s US business meaning FTX will be Dave’s exclusive partner for cryptocurrency, helping it integrate crypto into its platform.
Dave listed on the New York Stock Exchange in January this year through a $4bn reverse merger it agreed with special purpose acquisition company VPC Impact Acquisition Holdings III in June 2021, its earlier backers including financial services firm Capital One and conglomerate Kraft Group.
Norwest Venture Partners invested $50m in Dave in 2019 at a $1bn valuation to take its overall debt and equity financing to $189m. Investment banking firm JPMorgan Chase, Chernin Group, SV Angel, Mark Cuban, Jonathan Kraft, Skip Paul and Diplo are all earlier backers.
FTX Ventures was launched in January this year with $2bn in capital to invest in blockchain technology across software, social, gaming, healthcare and wider Web3 technology.
