Bankruptcy Move: FTX Ventures Cuts Deal with Dave for $100 Million Stake
Dave, a fintech firm specializing in financial services through its mobile application, is set to acquire a $100-million convertible promissory note previously issued to FTX Ventures, the venture capital arm of bankrupt crypto exchange FTX.
The deal involves Dave purchasing the note at a discounted price of $71 million, pending approval from a bankruptcy court, the company said in a Friday press release .
A hearing for the approval is scheduled for January 25.
A convertible promissory note is a financial instrument commonly used by startups.
It functions as a loan that can be converted into a share of the company at a later stage.
Dave, known for its offerings such as savings accounts, cash advances, and spending accounts, has secured a total of $536.3 million in funding over nine rounds, according to its Crunchbase profile.
In September 2023, the company raised $50 million through a debit emission.
The collaboration between Dave and FTX began in March 2022, when they partnered to facilitate cryptocurrency payments on Dave’s platform.
As part of this partnership, FTX Ventures made a $100-million investment in Dave.
However, following FTX’s bankruptcy in November 2022, the bankruptcy court reclaimed various investments, payments, and donations made by FTX and its subsidiaries.
In a recent announcement on December 19, FTX debtors revealed a global settlement with the Joint Official Liquidators for FTX’s Bahamian arm, as part of the ongoing bankruptcy proceedings.
This settlement is seen as a “novel and mutually-beneficial solution” that addresses cross-border legal issues.
Since November 2022, FTX debtors have filed multiple requests to liquidate the company’s assets in order to repay creditors.
The
Read more on cryptonews.com
