BusinessMark Cuban-Backed Personal Finance App Dave to Go Public...

Mark Cuban-Backed Personal Finance App Dave to Go Public in $4 Billion SPAC Deal

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Dallas Mavericks owner Mark Cuban is an investor in Dave, the banking app launched in 2017.



Photo:

Ashley Landis/The Dallas Morning News/Zuma Press

A special-purpose acquisition company sponsored by Victory Park Capital has agreed to merge with banking app Dave, allowing the financial startup to begin operating as a public company.

The combination between Victory’s blank-check company, VPC Impact Acquisition Holdings III Inc., and Dave, which is backed by billionaire investor

Mark Cuban,

is expected to be complete by the third or fourth quarter of the year, the companies said in a statement Monday.

Special-purpose acquisition companies, or SPACs, are publicly traded ventures formed to merge with a privately held company, thereby creating a newly public firm.

The company formed through the merger between Victory Park’s SPAC and Dave is expected to have an equity value on a pro forma basis of about $4 billion, Victory Park and Dave said.

Dave was launched in 2017 as an app meant to help consumers avoid bank-overdraft fees and now operates as a financial platform with 10 million customers, the companies said.

Last December, Dave launched a banking program offering spending accounts and debit cards, which now has more than 1.3 million users.

Tiger Global Management, Wellington Management, and Corbin Capital Partners have agreed to invest $210 million as the companies merge, Victory Park and Dave said. Victory Park has previously invested in Dave, providing a $100 million credit facility this last January, for example.

“This transaction and continued support from our longstanding investors signify confidence in our strategy, vision and the significant growth opportunities ahead,” Dave Chief Executive

Jason Wilk

said.

Private companies are flooding to special-purpose acquisition companies, or SPACs, to bypass the traditional IPO process and gain a public listing. WSJ explains why some critics say investing in these so-called blank-check companies isn’t worth the risk. Illustration: Zoë Soriano/WSJ

Write to Micah Maidenberg at [email protected]

Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the June 8, 2021, print edition as ‘Victory Park SPAC Plans Merger With App Dave.’

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