Figure Technologies has reportedly cut its funding goal and may spin off some product lines.
Bloomberg reported Monday (Feb. 6) that the startup building blockchain-based financial products aims to raise $100 million — one-third of the amount it had planned earlier and seemed to be near achieving— but that it may wait until the venture capital market picks up.
Figure is also considering a restructuring — though not layoffs — and a spinoff of its markets and payments businesses from its lending business, the report said.
These moves, along with an earlier scrapping of plans to go public, come as Figure Technologies deals with the industrywide downturn that has hit the sector, according to the report, which cited unnamed sources regarding the fundraising.
“We’re just dealing with a lot of headwinds in the industry right now,” Figure Co-founder and CEO Mike Cagney told Bloomberg, while not commenting on any fundraising efforts. “It’s a very hard market.”
Figure did not immediately reply to PYMNTS’ request for comment.