Treasury management startup Vesto wants to help other startups put their idle cash to work • ZebethMedia

Benjamin Döpfner has been building companies since he was a teenager. 
One of his more recent ventures was based in Berlin and at the time of its founding in 2019, Germany actually had negative interest rates – meaning that the company was paying back 50 basis points, or half a percent for each Euro that was in its account.
“That was very, very frustrating for me,” Döpfner recalls. So he reached out to his bank, asking about a corporate treasury offering but was told it would not work with companies who were not able to deposit at least 100 million Euros.
That frustration led the young entrepreneur in March of this year to start Vesto, a treasury management startup that aims to help other startups “manage, protect and extend their runway, instead of letting it sit idle in a checking account,” according to Döpfner.
“Ideally, companies should never have a dollar of idle cash, yet there are trillions, floating around in near zero-interest checking accounts,” he told ZebethMedia. “We want to eliminate idle cash, and help companies put it to work.”
Traditional banks have solutions, as do a few startups that have emerged over the recent years. But Döpfner argues that other alternatives are inflexible or risky and “come with big restraints.”  
“Money is locked in a slow, stodgy institution with little visibility and poor customer service, along with sky-high account minimums, rendering the product unavailable to most,” he said. “Newer startups are tackling corporate treasury from a crypto angle, leaving company funds at strong risk, while others tie money up into ‘one-size-fits-all’ pooled accounts limiting control…with very little customization for companies”
Vesto is registered with the U.S. Securities and Exchange Commission (SEC) as an investment advisor, is partnered with the Bank of NY Mellon. 
“The interaction is similar to a robo advisor,” Döpfner said. “Kind of like a Betterment or Wealthfront for businesses. But our offering is actually much farther-ranging than just a robo advisor, as our investment selection and management process is very tailored and high-touch when compared to a robo experience.”
Vesto so far has a couple of unnamed paying pilot customers under contract and according to Döpfner, is on track to see $100 million in assets under management by year’s end or early next year. Deposit sizes are generally higher, Döpfner added, with some amounting to $10 million or $20 million.
The company is launching to the public today and announcing that it has raised $2.8M in a seed round led by Contrary Capital with participation from Susa Ventures, SV Angel, Coalition and “strategic” angels including the founders of SoFi, Tinder, DoNotPay and others.
Vesto is partnered with the Bank of NY Mellon but interacts with its customers and serves as a manager of their investments after creating an investment proposal.
“There’s a reporting layer, a control layer,” Döpfner said. “So that companies can understand what’s happening with their cash and have full visibility while not giving up control.” For example, he adds, companies are able to withdraw money anytime they want or need it.
“Usually we’ll build a portfolio consisting of either US Treasuries or money market fund, or corporate bonds – -sometimes CDs” he explained. “We tried to really maximize safety, liquidity and then yield. We want to achieve good yields for customers but at the same time invest into low risk investment assets.”
Image Credits:
Vesto makes its money by charging a based fee, or cut of the amount of a  company’s deposit. Its target customers are Series A through Series D companies but in the longer term, wants to open up its offering to pre-seed stage companies to enterprise to small businesses and nonprofits.
Looking ahead, Döpfner envisions going after the full financial stack.
“Getting yield on cash is only one piece of the financial stack, and we want to cover the whole thing. Treasury is an ideal wedge because cash is the lifeblood of a startup. Every decision a startup makes can be traced back to how much runway they have, and that runway will be stored with,” Döpfner told ZebethMedia. “Corporate treasury – while a gigantic market – is simply the first step toward covering the rest of the stack.”
Contrary Capital General Partner Will Robbins notes that some of his firm’s portfolio companies are “leaving several million dollars per year on the table by not putting idle cash to work more effectively.”
“Especially in this fundraising environment, managing runway is critical, and Vesto has built the best product for doing that,” he wrote via email. 
Other products treat corporate treasury as a “nice to have” feature, in Robbins’ view.
“As great as big banks like First Republic or new entrants like Mercury are, founders just don’t get deep value from buying CDs or basic Treasury bills. Vesto’s mindset is focused on giving finance teams the power of a full asset manager in one software platform,” he said. “Companies like Apple and Airbnb famously manage their idle cash with ‘internal hedge funds’ and allowing every company to do the same is exciting.”
My weekly fintech newsletter, The Interchange, launched on May 1! Sign up here to get it in your inbox.

             Disclaimer: Any Product You Buy Here, Amazon Pays me A Commission With No Additional Fee.

 

This is a must Have Software For Your Home & Business. This software will help your business and make your job Stress Free.

Business and Office Management  Category.

(Old Version) H&R Block Tax Software Deluxe + State 2023 with Refund Bonus Offer (Amazon Exclusive) (PC/MAC Download)

(4265)

20% Off $49.99 $39.97 (as of November 22, 2024 05:32 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Choose to put your refund on an Amazon gift card and you can get a 2% bonus. One state program download included. State e-file sold separately. Reporting assistance on income from investments, stock options, home sales, and retirement Guidance on max... read more

Adobe Acrobat Pro | PDF Software | Convert, Edit, E-Sign, Protect | PC/Mac Online Code | Activation Required

(1101)

39% Off $239.88 $143.99 (as of November 22, 2024 05:37 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Create and edit PDFs. Collaborate with ease. E-sign documents and collect signatures. Get everything done in one app, wherever you go. Edit text and images without jumping to another app. E-sign documents or request e-signatures on any device. Recipi... read more

Adobe Photoshop Elements 2025 | Photo Editing | 3-Year Term License | PC/MAC | Box with Download Code | Activation Required

(17)

40% Off $99.99 $59.99 (as of November 22, 2024 05:37 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Remove objects with AI power. Create and control depth with AI. Change the color of any object. Seamlessly combine multiple pictures. Create with modern textures and graphics. Be creative with the web and mobile beta apps. Get a 3-year term license f... read more

Bitdefender Total Security 2024 – Complete Antivirus and Internet Security Suite – 5 Devices | 2 year Subscription | PC/Mac | Activation Code by Mail

(3511)

$74.99 (as of November 22, 2024 05:38 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

SPEED-OPTIMIZED, CROSS-PLATFORM PROTECTION: World-class antivirus security and cyber protection for Windows (Windows 8, Windows 8.1, Windows 10, and Windows 11), Mac OS (macOS X Yosemite 10.10 or later), iOS (11.2 or later), and Android (5.0 or later... read more

CLIP STUDIO PAINT PRO - Version 1 - Perpetual License - for Microsoft Windows and MacOS

(3062)

$23.99 (as of November 22, 2024 05:32 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Create original sketches using your mouse or draw naturally with a pen tablet. Powerful coloring tools make CLIP STUDIO PAINT your all-in-one illustration, painting, manga and comic creation solution. Use an assortment of powerful art tools for illus... read more

CodaKid Roblox Coding, Award-Winning, Coding for Kids, Ages 9+ with Online Mentoring Assistance, Learn Computer Programming and Code Fun Games with Lua and Video Game Programming Software (PC & Mac)

(333)

$59.00 (as of November 22, 2024 05:37 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

CodaKid’s Roblox Lua coding educational software provides 100+ hours of interactive student projects designed to engage and educate kids, teaching them to become creators in their own right. Students learn real Lua coding and video game design using ... read more

Code Python, Award-Winning STEM Courses, Coding for Kids, Ages 10+ with Online Mentoring Assistance, Learn Computer Programming and Code Amazing Games with Python (PC & Mac) (Box Art Varies)

(59)

$59.00 (as of November 22, 2024 05:32 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

CodaKid’s Python coding educational software provides 40 hours of interactive lessons designed to engage and educate kids, teaching them to become creators in their own right. Students learn real Python coding and video game design using the IDLE tex... read more

Coding for Kids: Learn to Code Minecraft Command Blocks - Video Game Design Coding - Computer Programming Courses, Ages 9+ (PC, Mac Compatible)

(33)

12% Off $39.95 $34.95 (as of November 22, 2024 05:43 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

✓ COMMAND BLOCKS MINECRAFT for all kids, not JUST GAMERS: Use command blocks inside your Minecraft games to create custom game play. You will be able to build an ice track, send a homing missle to a mob, sword, and much more! Gaming is a popular topi... read more

Coding for Kids with Minecraft - Ages 9+ Learn Real Computer Programming and Code Amazing Minecraft Mods with Java - Award-Winning Online Courses (PC & Mac) [registration_code]

(228)

$59.00 (as of November 22, 2024 05:37 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

CodaKid’s Minecraft Java coding educational software provides 90+ hours of interactive lessons designed to engage and educate kids, teaching them to become creators in their own right. Students learn real Java coding and video game design using the p... read more

Corel Easy CD & DVD Burning 2 | Disc Burner & Video Capture [PC Disc]

(1919)

$14.99 (as of November 22, 2024 05:37 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Easily copy and burn CDs and DVDs in minutes, right from your desktop; Preserve your photos, secure video backups, and create custom music CDs Capture or import your videos; Plus, author DVDs with chapters, menus and personalized disc labels Convert ... read more