Total amount raised
$357.7 Millions
Latest funding date
Location
Zest AI has successfully raised significant funding over multiple rounds, including a recent $200M growth investment from Insight Partners. The company specializes in AI-driven solutions for the lending industry, offering products like underwriting, fraud detection, and lending intelligence.
Keep reading to explore the intricacies of Zest AI's fundraising journey and the investors backing this innovative platform.
What Is Zest AI?
Zest AI, founded in 2009, is based in Burbank, California. The company was established by Douglas Merrill, Mike de Vere, and Shawn Budde.
Specializing in AI-driven solutions for the lending industry, Zest AI leverages machine learning to enhance credit underwriting processes. Their technology helps lenders make better decisions, increase approval rates, and reduce the risk of faulty credit decisions.
With a team of 101-250 employees, Zest AI continues to innovate in the field of lending intelligence, offering products that automate compliance and provide detailed data modeling results.
How Much Funding Has Zest AI Raised?
- Series A
- Amount Raised: $11.1M
- Date: July 2011
- Lead Investors: Lightspeed Venture Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop and launch their AI-driven lending platform.
- Series B
- Amount Raised: $23.1M
- Date: January 2012
- Lead Investors: Matrix
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and enhance their AI technology.
- Series B
- Amount Raised: $5M
- Date: December 2012
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further expand their market reach and product capabilities.
- Series C
- Amount Raised: $20M
- Date: July 2013
- Lead Investors: Northgate Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and improve their AI models.
- Series D
- Amount Raised: $10M
- Date: July 2016
- Lead Investors: Baidu
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance their technology and expand into new markets.
- Series E
- Amount Raised: $15M
- Date: October 2020
- Lead Investors: Insight Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support product development and market expansion.
- Funding Round
- Amount Raised: $23M
- Date: June 2021
- Lead Investors: First National Bank Of Omaha, VyStar Credit Union
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance their AI capabilities and expand their customer base.
- Series F
- Amount Raised: $50.6M
- Date: November 2022
- Lead Investors: Insight Partners, TruStage Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand access to their AI-backed underwriting automation product.
- Series G
- Amount Raised: $200M
- Date: December 2024
- Lead Investors: Insight Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale their operations and further develop their AI technology.
Total Amount Raised: $357.8M. Current Valuation: Not publicly disclosed.
Key Investors
- Insight Partners
- Details: Insight Partners is a global private equity and venture capital firm. They have invested in over 700 companies worldwide, with more than 55 portfolio companies achieving an IPO.
- Investment Focus Areas: High-growth technology, software, Internet startups.
- Notable Investments: Twitter, Shopify, DocuSign.
- CMFG Ventures
- Details: CMFG Ventures is the venture capital arm of CUNA Mutual Group, a trusted credit union partner since 1935. They focus on strategic investments in fintech companies.
- Investment Focus Areas: Fintech, insurtech, financial security.
- Notable Investments: CuneXus, SpringFour, ForeverCar.
- Northgate Capital
- Details: Northgate Capital is a venture capital and private equity firm investing in growth-stage companies. They have a diverse portfolio across various sectors.
- Investment Focus Areas: Technology, financial services, growth-stage companies.
- Notable Investments: Uber, Spotify, Airbnb.
- Lightspeed Venture Partners
- Details: Lightspeed Venture Partners is a multi-stage venture capital firm. They focus on accelerating disruptive innovations and trends in the enterprise and consumer sectors.
- Investment Focus Areas: Enterprise, consumer, technology.
- Notable Investments: Snapchat, Nest, GrubHub.
- Matrix Partners
- Details: Matrix Partners is a venture capital firm that invests in early-stage companies. They have a long history of supporting entrepreneurs in building successful businesses.
- Investment Focus Areas: Technology, software, consumer internet.
- Notable Investments: HubSpot, Zendesk, Oculus.
What's Next for Zest AI?
Zest AI stands at the cusp of a transformative era in financial services. With the recent $50 million funding, the company is poised to expand its AI-automated underwriting to a broader range of lenders, aiming to make credit decisions more accurate and inclusive. The opportunity to double its customer base, after tripling it in 2021, underscores the significant market demand and growth potential.
Future fundraising seems promising, given the strong investor confidence and rapid growth trajectory. As Zest AI scales, it may attract further investments to support technological advancements and market expansion. However, the company will need to navigate regulatory challenges and ensure its AI models remain unbiased and reliable amidst growing competition in the fintech space.
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