- Dave will go public through a
SPAC merger that will value the company at $4 billion. - The
banking app 's board of directors includes billionaireMark Cuban . - Founded in 2017, Dave said it has helped Americans avoid billions of dollars in overdraft fees charged by banks.
Dave, a banking app supported by billionaire Mark Cuban, on Monday announced it will go public through a merger with a blank-check company at a valuation of $4 billion.
Dave will merge with VPC Impact Acquisition Holdings III, a SPAC launched by Chicago-based Victory Park Capital, and includes a $210 million concurrent private placement led by Tiger Global Management. VPC completed its initial public offering for the SPAC in March.
Founded in 2017, Dave said it has helped Americans avoid billions of dollars in overdraft fees charged by banks, and has assisted over 10 million customers over the years.
"We believe the legacy financial system has failed to deliver and today, more than 150 million people need our help to build financial stability," Jason Wilk, Dave CEO, said in a statement.
The app is backed by Norwest, Section 32, Capital One, Mark Cuban Companies, The Kraft Group, SV Angel, and The Chernin Group.
The company's board of directors includes Mark Cuban, Metromile CEO Dan Preston, Google Ventures Founder Bill Maris, and Norwest Venture Partner Parker Barrile.
The merger is expected to close in the second half of 2021. Shares will trade under the ticker DAVE.
SPACs, shell companies seeking to merge with private companies with the intention of taking them public, have exploded in popularity in the last year.
In 2020, a total of 248 SPACs raised $83.3 billion according to SPAC Analytics. But in the sixth month of 2021 alone, data already show 333 SPACs that have raised $104 billion, comprising 61% of initial public offerings.