FTX Ventures Invests $100M in Banking App Provider Dave

Dave Inc. (Nasdaq: DAVE), a banking app on a mission to build products that level the financial playing field, has announced a partnership with West Realm Shires Services, Inc., which is the owner and operator of FTX US, “whereby the companies will work together to expand the digital assets ecosystem.”

FTX Ventures, a $2B venture fund, has also “invested $100 million in Dave.”

With this investment, Dave has considerably “enhanced its balance sheet with additional resources to expedite its growth strategy and invest in future initiatives, including those crypto-related.”

FTX US will serve as the firm’s “exclusive partner for cryptocurrencies, and the parties are currently exploring ways to introduce digital asset payments into Dave’s platform, while continuing to improve the customer experience for Dave members.”

Jason Wilk, CEO at Dave, stated:

“This is an exciting milestone for our Company, our shareholders and all Dave members. We believe blockchain technology has the potential to level the financial playing field across the globe. By aligning with a world-class leader such as FTX US, we are in position to enter the digital asset arena, explore new growth opportunities, and improve the member experience. FTX US is a pioneer in the cryptocurrency ecosystem, and we look forward to working with them long-term to enhance stakeholder value through digital assets.”

FTX US President Brett Harrison remarked:

“We consistently look to align with companies that share our vision, have unique and disruptive business models, and can help drive widespread adoption of digital assets. Dave is a great fit as they check all three boxes. We see significant growth opportunities ahead for both of our companies and are excited to be working with Dave.”

The $100 million investment was “made pursuant to an unsecured convertible note (the Note), which bears interest at a rate of 3.00% per year (compounded semi-annually). Interest may be paid in-kind or in cash, at the Company’s option.”

Forty-eight months after the date of the initial issuance of the Note, the company will “pay the FTX Ventures the sum of (i) the outstanding principal amount of the Note, plus (ii) all accrued but unpaid interest thereon, plus (iii) all expenses incurred by the FTX Ventures.”

Payment of the Redemption Price on the Maturity Date will “constitute a redemption of the Note in whole.”

During the term of the Note, the Note will “be convertible into shares of the Company’s Class A Common Stock, par value $0.0001 per share at the option of the FTX Ventures.”

The initial conversion price of the Note “is $10.00 per share of Common Stock, subject to customary adjustments.”

Beginning on the twenty-four-month anniversary of the Issuance Date continuing until the Maturity Date, “if the closing price of the Common Stock equals or exceeds 175% of the Conversion Price for 20 out of the 30 consecutive trading days ending immediately preceding the delivery of the notice of the Company’s election to convert the Note, the Note will be convertible into shares of Common Stock at the option of the Company, upon delivery of a written notice to the FTX Ventures electing to convert the Note or all or any portion of the outstanding principal amount of the Note.”

At any time prior to the Maturity Date, the Company “may, in its sole discretion and upon delivery of a written notice to the FTX Ventures electing to prepay the Note, prepay the Note without penalty by paying the FTX Ventures 100% of the Redemption Price.”

As covered, Dave is a banking app on a mission “to build products that level the financial playing field.”

Dave’s financial tools, “including its debit card and spending account, help millions of customers bank, budget, access ExtraCash before payday, find work and build credit.”

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