London-based fintech Vitt, a one-stop cash management solution for startups, raised €1 million in a round co-led by existing investors Better Tomorrow Ventures and Speedinvest. After 2 years in operation, the fintech’s total funding to date is up to €16 million across both debt and equity.
At the same time, they announced the launch of Vitt Treasury, designed to help startups both diversify and earn a return on their idle cash. Built on top of Money Market Fund products, Vitt’s new product allows customers to earn up to 5.07%*. Assets are held solely with an FCA-regulated custodian, meaning the assets are safely held by an established third party.
“Following recent headlines covering Metro Bank’s financial restructuring – a worrying echo of the SVB crisis earlier in the year, it’s unsurprising that founders are once again looking closely at where they’re keeping their cash. A founder’s job is to 10x company value, not earn an extra 0.1% of interest. With Vitt we’ve built a solution that you can set and forget, knowing you’ve made the best decision with your finances. On $1 million you could earn ~$50k; that’s cash for an extra hire,” said Saket Kumar, CEO of Vitt.
While treasury solutions exist for established companies, startups that have raised cash are missing out on millions of pounds in interest that could be used to drive growth, extend their runway, and expand their teams. Applying for a Vitt Treasury account takes under 15 minutes.
Vitt has been growing over 15% week on week for the past 3 months, and already helps startups who have raised hundreds of millions in financing to manage their money. Customers such as nPlan, who raised $18.5 million from GV in 2021 have been using Vitt since the product beta earlier this year.
Additional funding co-led by existing investors Better Tomorrow and Speedinvest, with the support of well-known business angels, helped to launch Vitt Treasury and will allow them to scale it across the UK.
Saket commented: “Given the market appetite, existing investors were excited to double-down and we selectively added value-add angels such as Max [Founder of N26]. We have both customers managing thousands and those managing millions. It is incredibly rewarding to be able to serve founders across their journey.”
Alice Bentinck, Co-founder of Entrepreneur First, added: “Metro Bank serves as a reminder to startups: you need to be smart with your cash. By giving access to Money Market Funds, Vitt lets you reduce risk by diversifying your cash so you can get back to what’s important: building your company.”
Olga Shikhantsova, Partner at Speedinvest, said: “We’re excited to continue to partner with Vitt – while Fintechs offering high-yield savings products exist in the US, Europe remains fertile ground with an active venture ecosystem. With the collapse of SVB, Vitt has launched a product with a clear why now that sets itself apart from incumbents.”
Read the orginal article: https://www.eu-startups.com/2023/12/london-based-vitt-adds-e1-million-to-launch-product-that-helps-startups-diversify-and-earn-a-return-on-their-idle-cash/
