Online Banking Startup Dave To Go Public via SPAC at $4B Valuation

Francesca Billington

Francesca Billington is a freelance reporter. Prior to that, she was a general assignment reporter for dot.LA and has also reported for KCRW, the Santa Monica Daily Press and local publications in New Jersey. She graduated from Princeton in 2019 with a degree in anthropology.

Online Banking Startup Dave To Go Public via SPAC at $4B Valuation

Dave, the Los Angeles banking app that launched a debit card with no monthly fees, is going public through a so-called blank-check company, the startup announced Monday.

Dave is joining the SPAC boom, merging with Victory Park Capital, or VPC, a Chicago-headquartered investment firm. Tiger Global Management is leading a PIPE backed by investors who have committed $220 million.

The deal, expected to close by the fourth quarter of 2021, was approved by Dave's board of directors and VPC Impact Acquisition Holdings III, Inc, a special purpose acquisition company sponsored by VPC.

These so-called blank-check vehicles have become enormously popular with more SPACs completing IPOs last year alone than in the previous 10 years combined.

Regulators still must approve the deal along with the firm's stockholders. Once public, the company will trade under the ticker symbol DAVE.

The financial management platform was launched in 2017 with a suite of banking tools like overdraft protection and a gig-economy job board. It currently has 10 million users.

Dave Banking released its debit card with no monthly fees and online banking app last December. It's amassed about 1.3 million members, according to the company.

The fintech startup is also on a hiring kick. In January, a former Apple executive who designed the Apple Card became Dave's chief commercial officer. A new marketing officer, president of engineering and chief people officer were brought on last year.

"With its strong management team, differentiated product suite and immense brand affinity, we believe Dave is well-positioned to achieve future growth and continue to disrupt the legacy financial system," Brendan Carroll, co-CEO of VPCC and co-founder of VPC, said in a statement.

Mark Cuban Companies, Section 32, The Kraft Group, SV Angel, Capital one and Norwest are among Dave's investors.

Subscribe to our newsletter to catch every headline.


Behind Her Empire: Sprinkles Cupcake Co-Founder Candace Nelson On Finding Your Market Niche

Yasmin Nouri

Yasmin is the host of the "Behind Her Empire" podcast, focused on highlighting self-made women leaders and entrepreneurs and how they tackle their career, money, family and life.

Each episode covers their unique hero's journey and what it really takes to build an empire with key lessons learned along the way. The goal of the series is to empower you to see what's possible & inspire you to create financial freedom in your own life.

​Sprinkles' Founder Candace Nelson
image courtesy of Candace Nelson

With multiple TLC shows devoted to them, and high-end bakeries popping up all over the country, it’s hard to imagine there was ever a time when cupcake brands weren’t a thing.

But when Candace Nelson introduced Sprinkles Cupcakes in 2005, the market looked a lot different. On this episode of the “Behind Her Empire” podcast, the Sprinkles co-founder shares her journey to revolutionize the baking industry.

Read moreShow less