Blockchain Startup Figure Looks to Raise Funds, Spin Off Assets

Mike Cagney, the former chief executive officer of lending giant SoFi, is searching for investors for his latest startup, Figure Technologies Inc. The company, which builds financial products on a blockchain, is also seeking to spin off some product lines as it navigates a dramatic industry downturn.

Two years ago, when investors’ fintech frenzy was at its peak, Cagney raised $200 million for Figure. The company at the time was valued at $3.2 billion, gaining it entrance into a rarified club of multibillion-dollar startups. The culture among employees was known to be hard-charging, and at least occasionally, hard-partying too.

But recently, things have gotten tougher. In the last few months, several senior ...