Ribbit Capital, a significant investor in fintech startups together with cryptocurrency and blockchain ventures, is searching for to boost $350 million for a “blank check” firm that will make acquisitions.
- The special-purpose acquisition firm (SPAC), Ribbit LEAP Ltd., filed a prospectus with the Securities and Change Fee late Tuesday.
- As a SPAC, Ribbit Leap has no working enterprise – it was created to search out and purchase one. “We have not selected any business combination partner and we have not … initiated any substantive discussions with” any candidates but, the prospectus notes.
- Not like conventional publicly traded corporations, the place main acquisitions are topic to shareholder approval, a SPAC asks for huge latitude to make purchases (therefore the time period “blank check”).
- “Our shareholders may not be afforded an opportunity to vote on our proposed initial business combination, which means we may complete our initial business combination even though a majority of our shareholders do not support such a combination,” warns the danger components part of the Ribbit Leap prospectus.
- JPMorgan Chase is the only bookrunner for the preliminary public providing (IPO) of stock.
- The underwriter has the choice to challenge as a lot as 15% extra shares than deliberate, which might carry whole proceeds to $402.5 million.
- The prospectus mentions cryptocurrency solely twice in passing, in passages that describe Ribbit Capital’s vary of investments, which additionally embrace corporations in mainstream monetary providers and know-how sectors.
- Ribbit Capital is a founding member of the Libra Affiliation, the consortium arrange final 12 months by Fb to develop a world digital foreign money (which later curtailed its ambitions to primarily issuing stablecoins tied to fiat).
- Within the blockchain area, the funding agency led a seed spherical for Bobby Lee’s Ballet crypto pockets startup in 2019. It has additionally invested in Coinbase, Revolut, Robinhood, Xapo, Chainalysis, Determine Applied sciences and CRB Group (guardian firm of crypto-friendly Cross River Bank).
- Former U.S. Undersecretary of the Treasury Sigal Mandelkar, who spearheaded crypto-related sanctions efforts in opposition to people and warned crypto companies to adjust to anti-money-laundering (AML) and know-your-customer (KYC) legal guidelines, joined Ribbit Capital as an advisor this 12 months. She is known as as a accomplice in Tuesday’s prospectus.
- Different Ribbit Capital portfolio corporations embrace Affirm, Brex, Coalition, CreditKarma, MercadoLibre, Subsequent Insurance coverage, Nubank, Root, Sea Restricted, Improve and Zillow.
Whereas it’s unclear how a lot Ribbit Leap will give attention to crypto or blockchain acquisitions, the submitting comes at a time of renewed exuberance within the sector. Apart from the bull run in coin costs, fledgling exchange INX Ltd. has launched an on-chain regulated IPO, and heavyweights Coinbase and Ripple are reportedly eyeing public listings.