Total amount raised
$170 Millions
Latest funding date
Location
Vesta has successfully raised significant funding through various rounds, with notable investors including Schwarzwald Capital Fund and Runway Growth Capital. The company focuses on providing advanced fraud prevention and payment processing solutions, particularly for the telecom industry.
Keep reading to explore the intricacies of Vesta's fundraising journey and the investors backing this innovative platform.
What Is Vesta?
Vesta, founded in 1995, is a financial technology company based in Lake Oswego, Oregon. Specializing in fraud prevention and payment processing, Vesta serves the telecommunications industry with advanced AI-driven solutions.
With an employee count ranging from 251 to 500, Vesta leverages over 25 years of experience to offer a transaction guarantee platform that minimizes fraud and maximizes payment approvals. The company aims to provide a frictionless customer experience by eliminating chargebacks and other forms of digital fraud.
How Much Funding Has Vesta Raised?
- Venture Round
- Amount Raised: $20M
- Date: November 2003
- Lead Investors: Oak Investment Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand Vesta's market presence and enhance its fraud prevention technology.
- Private Equity Round
- Amount Raised: $125M
- Date: May 2020
- Lead Investors: Goldfinch Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and invest in advanced AI-driven fraud prevention solutions.
- Venture Round
- Amount Raised: Not publicly disclosed
- Date: August 2020
- Lead Investors: EDBI
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support Vesta's expansion into new markets and enhance its product offerings.
- Debt Financing
- Amount Raised: $25M
- Date: January 2023
- Lead Investors: Runway Growth Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To add working capital and support Vesta's growth and product development.
Total Amount Raised: $170M
Current Valuation: Not publicly disclosed
Key Investors
- Runway Growth Capital
- Details: Runway Growth Capital LLC is an investment advisor to various investment funds, including Runway Growth Finance Corp. (Nasdaq: RWAY). The company provides senior term loans ranging from $10 million to $100 million to fast-growing companies in the U.S. and Canada.
- Investment Focus Areas: Technology, healthcare, consumer, financial services
- Notable Investments: Piano, Vesta
- EDBI
- Details: EDBI is the corporate investment arm of the Singapore Economic Development Board. It focuses on strategic investments to support Singapore's economic development.
- Investment Focus Areas: Technology, healthcare, strategic sectors
- Notable Investments: Grab, Razer, Biofourmis
- Goldfinch Partners
- Details: Goldfinch Partners is a private equity firm that invests in technology and financial services. The firm aims to create value through strategic investments and operational improvements.
- Investment Focus Areas: Technology, financial services
- Notable Investments: Western Union Business Solutions
- Oak Investment Partners
- Details: Oak Investment Partners is a multi-stage venture capital firm. It has a long history of investing in high-growth companies across various sectors.
- Investment Focus Areas: Information technology, healthcare, financial services
- Notable Investments: Office Depot, Genzyme, Digital Island
What's Next for Vesta?
Vesta's future looks promising as it leverages a $25 million loan to expand its customer base and enhance its product offerings. The integration with major companies like PLDT and Smart in the Philippines opens up significant market opportunities, particularly in the growing digital financial services sector. This expansion is supported by the increasing reliance on AI-driven solutions to combat fraud and improve transaction approval rates.
With the strong backing of Runway Growth Capital, Vesta is well-positioned to secure additional funding in the future. The non-dilutive nature of the current loan suggests that similar financing options may be pursued to support further growth and product development. However, Vesta will need to navigate challenges such as adapting to evolving fraud tactics and maintaining high approval rates while scaling its operations globally.
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