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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.
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The second time was the charm for superagent-turned-mogul Ari Emanuel.
After facing the embarrassment of being forced to pull the initial public offering for Endeavor Group Holdings at the 11th hour in 2019, shares of his entertainment and live events conglomerate debuted Thursday on the New York Stock Exchange with a 5% gain.
Endeavor includes the venerable William Morris Agency and the sports and modeling agency IMG as well as live events as varied as the Professional Bull Riders tour and Miss Universe. Most appealing to investors, the firm is in the process of acquiring 100% of the mixed-martial-arts league UFC, which experienced considerable growth during the pandemic.
Endeavor's leaders Ari Emanuel and Patrick Whitesell, as well as UFC president Dana White, all appeared at the NYSE Thursday morning wearing black masks. Soon after, Endeavor stock began trading at $24 per share, which was the upper end of where it was priced.
With many live events cancelled, Endeavor brought in just $3.5 billion in revenue in 2020, resulting in a net loss of $625.3 million. In pre-pandemic 2019, it brought in $4.6 billion in revenue and recorded a net loss of $530.7 million.
But that did not scare off billionaire tech titans Larry Ellison and Michael Dell, who bought shares in the company, or Elon Musk, who joined the board of directors.
Endeavor was co-founded by Emanuel when he broke away from ICM in 1995. It merged with William Morris Agency in 2009, acquired IMG in 2014, and a stake in UFC in 2016.
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