Kentucky-based Venminder, the third party risk management solutions provider, has closed a $5m Series C round to further improve its offering.
The round was led by venture capital firms Bain Capital Ventures and MissionOG. Both firms previously injected money into the company. Most recently, they invested in Venminder’s $5m Series B funding round in July 2018.
“Since originally investing in Venminder, we have seen an acceleration of risk in the market and a strain on corporate resources to properly manage their vendors,” remarked George Krautzel, managing partner of MissionOG. “Companies need to find solutions to increase efficiency and preserve effectiveness, while reducing workload. Venminder has emerged as the market leader in third party risk management.”
Venminder is now going to use the money to further develop its programs after experiencing success and growth through partnerships. Most notably, the company has found customers looking for an all-in-one solution to help them optimize and streamline their processes and is gearing up to signing its 700th customer.
The firm has developed SaaS software built with the capabilities to drive an entire third party risk management program, as well as experienced in-house teams to identify and risk assess vendor documentation and data for oversight analytics or insights.
James Hyde, CEO of Venminder, attributed the success to the startup’s “highly collaborative approach” combined with it “carefully monitoring regulatory updates” and “any industry challenges or concerns.”
Investment into risk management companies has decreased ever so slightly over the past few years, according to RegTech Analyst’s own research. For instance, 2017 was a record year for cash injections into the risk management sector. That year 16.7 per cent of the total investments into the RegTech space were devoted to this sector. However, the grand total, percentagewise, dropped to 11 per cent in 2018.
There may be signs that there is a slight uptick in risk management investment. The first three months of 2019 saw 13.1 per cent of the total RegTech investments be devoted to this sector. However, it may be too early to tell how this will develop over the rest of 2019.
The news of Venminder’s investment comes after Bain Capital Ventures announced plans to raise a $1bn fund to invest in cybersecurity and enterprise software companies. At the same time, it announced plans to branch out into the FinTech sector.
But Bain Capital Ventures is not the only one stepping up to invest in technology companies servicing people’s financial needs. FinTech Global’s own research showed that investment in the sector grew tremendously between 2014 and 2017. During that time, investment jumped from £685.3m to £2.68bn. Although, that number did drop to roughly £2.36bn in 2018 due to there being fewer deals worth over £50m.
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