FTX Ventures, a venture capital (VC) firm, has cut a deal with Dave, an upstart tech company, to acquire a $100 million stake. The investment will be FTX Venture’s largest to date. This major move shows FTX’s willingness to take a risk on high-potential early-stage companies. The announcement also serves as a reminder of how VC firms can support startups dealing with bankruptcy.
By investing in Dave, FTX Ventures is providing much needed capital that could help the startup navigate through its current financial situation. This new capital can support Dave’s efforts to stay afloat and potentially revive its business, preserving and creating jobs. Additionally, the injection of funds from FTX could provide much needed liquidity and be used to pay some of the company’s creditors. By investing in Dave, FTX Ventures is showing a commitment to helping startups through financial difficulty, and their willingness to support young companies with big potential.