June 8th – June 14th
PERSPECTIVES by Eric F. Risley
We’ve long been fond of saying crypto doesn’t stand alone. To be truly impactful and achieve longevity, the set of technologies inherent within this label must be applied to real-world problems. Thankfully, there are an increasing number of teams guiding our industry toward this future.
Figure (NASDAQ: FIGR) stands alone as the only publicly traded “crypto-native” company dedicated to this vision. Starting with home equity lines of credit (HELOCs), they demonstrated their ability to deliver “faster, better, cheaper” not by just attracting consumers directly, but far more impressively attracting over 250 well established home lenders to use their white-labeled platform. Figure isn’t really competing with these partners, rather they have demonstrated how to make their partners business better for borrowers and more profitable for the partner, everyone wins.
HELOCs were all about targeted market entry (the “Wedge”) allowing directed focus. Since then Figure has begun offering first-lien mortgages and auto loans among other categories. This week Figure announced the acquisition of Kiavi which bolsters their real-estate-backed lending business with residential transition loans (RTL) which is detailed in our M&A Alert, here.
Figure has aspirations far beyond lending as well represented by the chart on the next page from their most recent earnings release presentation. Figure represents more and more of what crypto will become in the next few years, moving beyond token-value speculation.
In other news, Blockworks has acquired Messari, reportedly for over $10M, which is detailed in our M&A Alert, here.