Banking app Dave to buy back $100M stake from FTX
Fintech firm Dave will purchase a convertible promissory note worth $100 million at a discounted rate, paying $71 million to FTX liquidators. Court approval is pending for the deal.
Fintech firm Dave has announced an agreement to purchase a $100 million convertible promissory note previously issued to FTX Ventures, the venture capital arm of bankrupt crypto exchange FTX.
As per the agreement, Dave will purchase the note for $71 million at a discounted price. The deal is pending approval from a bankruptcy court, with a hearing scheduled for Jan. 25. A convertible promissory note is a financial instrument commonly used by startups. It’s essentially a loan that can be turned into a share of the company later.
Dave offers financial services via a mobile application, including savings accounts, cash advances, and spending accounts. According to the company’s Crunchbase profile, it has raised a total of $536.3 million in funding over nine rounds. The latest funding for Dave was secured through a $50 million debit emission in September 2023.
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