Ex-SoFi CEO on rebound with new fintech venture
Ex-CEO and SoFi founder Mike Cagney is plotting a comeback with a new fintech start-up amidst allegations of sexual harassment.
As reported by Recode, Cagney has approached investors about a new fintech start-up and plans to raise $25 million, according to those familiar with his outreaches. Those in the know also note Cagney has pitched to Paypal co-founder Peter Thiel as well as others who previously backed SoFi.
The quick rebound has angered some as he was forced out in September 2017, after damaging stories unveiled a workplace plagued with alleged misconduct and the improper treatment of women.
Cagney is starting the new company alongside his wife, June Ou, who previously served as SoFi’s CTO. As it stands, the company does not yet have a name or has been publicly announced – although, Ou’s Linkedin profile shows she is COO of a “#newCO”.
A job listing has since appeared on GlassDoor requesting engineers, saying: “We are launching a new fintech focused company in the credit enablement space with the mission of leveraging blockchain, AI and advanced analytics to unlock new access points for consumer credit products.”
The new company is said to be focused on home equity lines of credit – this could change as the company refines its plans.
SoFi’s former VP of engineering, Matt Conroy, also posted the job listing on LinkedIn.
Recode also says the initial money for the start-up will come from Cagney’s pocket – it is likely that would be enough to launch the start-up.
Cagney has pitched to some of his largest backers at SoFi, Thiel, DCM Ventures and Renren. He has also sought out Wall Street banks and other investors in the fintech space, the report adds.
No deal is yet final, but even though he has not yet raised the $25 million, several investors expect him to succeed given how much money was raised for his previous backers.