Crypto VC Firm Ribbit Capital to Raise $350M Blank Check IPO

Ribbit LEAP, a blank check company formed by Ribbit Capital, filed on Tuesday with the SEC to raise $350 million in an IPO.

By · Aug 26, 2020 . 6min read

Ribbit capital to raise IPO

Ribbit LEAP, a blank check company formed by Ribbit Capital, an early bitcoin venture capital firm, filed on Tuesday with the SEC to raise $350 million in an initial public offering (IPO). The SPAC (special-purpose acquisition company), Ribbit LEAP Ltd., filed a prospectus with the Securities and Exchange Commission late Tuesday. The sole bookrunner for the initial public offering (IPO) of the stock is JPMorgan Chase. Further, in Conventional publicly traded companies, significant acquisitions are subject to shareholder approval. However, SPAC requests for the broad scope to make investments hence called “blank check.”

Moreover, providing a rough idea of the kinds of business Ribbit LEAP might do, the Cayman Islands-based company identifies its predecessor’s mission among the “guiding principles” in the filing. “We have not selected any business combination partner, and we have not … initiated any substantive discussions with” any candidates yet, the prospectus notes. The filing introduces no details about how precisely Ribbit might use the public entity. However, glancing at their past offers intriguing insights.

Comprehensive Details of Crypto VC Firm Ribbit Capital

The Palo Alto, California-based firm, was established in 2012 to fund primarily in financial technology startups. Ribbit Capital was an early investor in cryptocurrency’s first unicorn, Coinbase. It has built a portfolio of approximately 75 private and public company investments, including Brex Inc., CreditKarma, MercadoLibre, Inc. Robinhood Markets, and Zillow Group, Inc. 

While many of the investments have crypto services, Xapo, a custody firm in-part acquired by Coinbase in August 2019, Multicoin Capital and FBG Capital are all focused almost exclusively on the space. The firm will pursue financial services similar to the $2.6 billion Ribbit Capital’s existing portfolio, including $8 billion cryptocurrency exchange Coinbase, $11.2 billion Robinhood, and $1.2 billion Figure Technologies. This is just the latest in recent filings to create similarly structured special purpose acquisition companies (SPACs).

Ribbit Capital is a founding member of the Libra Association. Facebook established Libra Association last year to develop a global digital currency. In the blockchain space, the investment firm led a seed round for Bobby Lee’s Ballet crypto wallet startup in 2019. Moreover, it also funded Coinbase, Revolut, Robinhood, Xapo, Chainalysis, Figure Technologies, and CRB Group.

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