Dave Agrees to Acquire $100M Note from FTX Ventures at Discounted Price

Fintech company Dave has disclosed an agreement to acquire a $100-million convertible promissory note issued to FTX Ventures, the venture capital arm of the bankrupt crypto exchange FTX. The purchase will be at a discounted price of $71 million, subject to approval from a bankruptcy court, with a hearing set for Jan. 25. A convertible promissory note, a financial instrument used by startups, essentially represents a loan convertible into a share of the company later.

Dave, providing financial services through a mobile application, including savings accounts and cash advances, has raised a total of $536.3 million in funding. The latest funding was secured through a $50-million debit emission in September 2023.

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The company had partnered with FTX in March 2022 for cryptocurrency payments, involving a $100-million investment from FTX Ventures. However, investments, payments, and donations made prior to FTX’s bankruptcy in November 2022 were reclaimed by the bankruptcy court.

FTX debtors recently announced a global settlement as part of bankruptcy proceedings, resolving issues with the firm’s Bahamian arm. FTX founder Sam Bankman-Fried was found guilty of multiple charges in November 2022, with his sentencing scheduled for March 28, 2024.