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.

https://twitter.com/frosebillington
francesca@dot.la

Subscribe to our newsletter to catch every headline.

Cadence

Pasadena's Numerade Believes Tutoring Is The Solution To Online Schooling Setbacks

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

kid looking at computer screen for online school
Andria Moore

Nationally, kids whose schools met online in the 2020-2021 year performed 13% lower in math and 8% lower in reading compared with kids who had in-person schooling.

Nhon Ma, co-founder of online tutoring platform Numerade believes that this issue will continue to persist unless more students gain access to tutoring outside the classroom.

Read moreShow less

Kroma Wellness Founder Lisa Odenweller on Breaking Into the Nutrition Industry

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.

Kroma Wellness Founder Lisa Odenweller
Image courtesy of Kroma Wellness

On this episode of Behind Her Empire, Lisa Odenweller opens up about her superfood nutrition company, Kroma Wellness, and the difficulties of breaking into the wellness industry.

Odenweller began her career in the wellness space in 2011 when she opened a chain of superfood cafes around Southern California called Beaming Wellness.

Read moreShow less

Netflix is Expanding to PC Titles Despite Weak Demand for Mobile Games

Samson Amore

Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College and previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.

person gaming

It’s been over a year since Netflix first ventured into video games. Starting with a stream of mobile titles based on its hit TV shows like “Stranger Things” or “The Queen’s Gambit,” the streaming colossus hoped that it could extend the life of its most popular properties while also making some extra cash by capitalizing on the record-breaking gaming sales earlier in the pandemic.

Read moreShow less
RELATEDEDITOR'S PICKS
LA TECH JOBS
interchangeLA
Trending