- SoFi shares began trading Tuesday, marking the culmination of a $ 2.4 billion SPAC deal.
- Anthony Noto, CEO of SoFi, told Insider to make public a goal from the day he joined the startup in 2018.
- SoFi joined Social Capital Hedosophia Corp V, a white-collar company led by Chamath Palihapitiya.
- See more stories on the Insider activity page.
When Anthony Noto joined SoFi from Twitter more than three years ago to serve as CEO of the personal finance startup, he came up with three goals in mind.
In addition to focusing on the quality – not the quantity – of lending and developing mobile offerings, Noto told the SoFi board in December 2017 that it wanted to establish a stable and efficient executive team while leading the company to public procurement.
On Tuesday, it became a reality when SoFi began trading publicly on the Nasdaq after the end of its merger with Social Capital Hedosophia Corp V, a special-purpose acquisition company backed by Chamath Palihapitiya.
“We have blitzscaled every day and every minute that we’ve been here, and that’s how we’ve been here before. And frankly, it’s built a foundation of our society and our competitive advantage,” Noto told Insider, referring to the LinkedIn co-founder. Reed Hoffman’s mantra of building a product or a society at large and quickly.
SoFi shares closed up more than 12% Tuesday at $ 22.65 a share.
While the public is a significant milestone for any company, it’s particularly great for Noto, who took the step to join SoFi when the startup was probably its lowest point.
SoFi co-founder and former CEO Mike Cagney resigned from the company in 2017 afterwards accusations of sexual harassment.
“I think Anthony has really changed the culture of the company,” said David Chao, co-founder and CEO of DCM, a venture capital firm and early SoFi investor. Chao helped with the recruitment process to find Noto to take over as CEO of SoFi, which he did in February 2018.
When asked if he kept in touch with the founding team of SoFi, Noto simply replied, “Nothing at all.”
Noto brought to SoFi both a technological background (he came from Twitter, where he was CFO) and banking (he led the TMT team at Goldman Sachs before decamping for Silicon Valley). It’s up to Goldman, Noto said, to “have a leading position” for changes in mobile technology that work the industry.
As for its other priorities, SoFi has built a wide range of innovations in the last two years.
More recently, it has begun to offer it to its customers access to pre-market IPO shares, a move also made by competitor Robinhood. In March, SoFi announced the wholesale acquisition of Golden Pacific Bancorp, the Wall Street Journal reported, as the start-up seeks to successfully obtain a U.S. bank card. Also this year, SoFi launched a credit card product in collaboration with Mastercard.
Palihapitiya’s white-collar control company debuted earlier in October. In early January, SoFi and Palihapitiya confirmed the imminent merger between the two entities, and last Thursday, the agreement was approved by shareholders ahead of the shares that begin trading Tuesday.
“We originally made a private investment, and as we began to receive feedback on this and the wider investor interest – and thinking about our capital needs – it evolved into a real deal,” Noto said.
This deal involved a private investment in SoFi in December by T. Rowe Price, a $ 1.2 billion PIPE deal led by Palihapitiya, and the
“It’s often the case that I take that presentation that I created for the council on December 17th and show it to the people I recruited at the beginning. They were ideas on paper. A year ago, it was 80% complete. .Now, everything I put on paper, we had a good time, ”Noto said.