Figure gets unicorn valuation, despite CEO Mike Cagney's past misdeeds
Figure, a San Francisco-based consumer lending platform, raised $103 million in Series C funding led by Morgan Creek Digital at a $1.2 billion valuation.
Why it matters: Figure is led by Mike Cagney, who resigned as CEO of SoFi after reports of company-wide sexual harassment problems — including Cagney's multiple relationships with female employees and at least one instance of sending unwanted texts (an incident which resulted in a financial settlement).
- Other investors in the round include MUFG Innovation Partners, DCM, Digital Currency Group, HCM Capital, Ribbit Capital, RPM Ventures, and partners of DST Global.
Figure backers contacted by Axios are singing a consistent tune: We're confident Cagney has learned from his mistakes and his new company is "doing things better."
- Anthony Pompliano (Morgan Creek): "Mike Cagney and others who worked at SoFi would say that they had a very 'results-oriented culture.' What that does is create a culture where people look past bad behavior when results are delivered. This is obviously not the right way to do things and the Figure team recognizes that. Mike specifically has been committed to doing things a different and better way at Figure. ... While we cannot go back and change the past, my partners and I built confidence over time that the team that has been assembled, coupled with the frequent focus and conversation around these topics, serve as a strong foundation to make sure that Figure is built in a way that doesn’t allow for those same mistakes to be repeated."
- David Chao (DCM): "Mike spent a good deal of time self reflecting after SoFi and I saw a clear positive change. Half of his direct reports are now women and the board proactively works with HR and legal to make sure that employees have a whistle-blower process that is best-in-class. What makes Silicon Valley special is that it’s an environment where people can make mistakes, learn from them and are given the chance to rebound. In Asia or Europe, usually it’s one strike and you are out. America loves a comeback story and Mike is more driven and motivated to build Figure into a world class company with more sensitivity."