Dave to become a publicly traded company via merger with VPC Impact Acquisition Holdings III

By Pavithra R

Dave, the banking app on a mission to create financial opportunity that advances America’s collective potential, has announced entering into a definitive agreement for a business combination with VPC Impact Acquisition Holdings III, a special purpose acquisition company sponsored by Victory Park Capital (VPC), that result in Dave becoming a publicly-traded company with an expected pro forma, fully-diluted equity value of approximately $4 bn, assuming no redemptions.

Founded in 2017, Dave is a leading U.S. based challenger bank on a mission to put everyone’s financial mind at ease with free overdraft cash, budgeting and side gigs. The company helping 10 million customers with banking, financial insights, overdraft protection, building credit and finding side gigs. The firm aims to help foster the financial health of its members while also giving back to the community, having pledged over 13 million meals to Feeding America since its launch. To date, Dave estimates to have helped customers avoid nearly $1 bn in overdraft fees through its flagship feature, ExtraCash, and earn over $200 mn in income through its gig-economy job board, Side Hustle.

“At Dave, we’re committed to improving the financial health of our members. We believe the legacy financial system has failed to deliver and today, more than 150 million people need our help to build financial stability. Dave is upending the banking industry with our suite of breakthrough financial products and making a meaningful impact on our customers’ lives. This transaction and continued support from our longstanding investors signify confidence in our strategy, vision and the significant growth opportunities ahead,” said Jason Wilk, CEO of Dave.

Chicago based Victory Park Capital, a global investment firm has a long track record of executing debt and equity financing transactions with some of the largest, most innovative global fintech companies. VPC has also been a longstanding investor in Dave.

“Dave’s growth and expansion over the last few years have been significant and we believe that the company has only scratched the surface of what it can achieve. With its strong management team, differentiated product suite and immense brand affinity, we believe Dave is well-positioned to achieve future growth and continue to disrupt the legacy financial system,” said Brendan Carroll, Co-CEO of VPCC and Senior Partner and Co-founder of VPC.

Dave has been backed by world-class investors including Norwest, Section 32, Capital One, Mark Cuban Companies, The Kraft Group, SV Angel and The Chernin Group. The company’s board of directors includes Jason Wilk; Dan Preston, CEO of Metromile; Bill Maris, Google Ventures Founder; Parker Barrile, Partner at Norwest Venture Partners; and Mark Cuban.