A Boston-based venture firm Vestigo Ventures announced that it has raised $58.9 million for its first investment fund. Although the capital is a small amount it still is of great value to early-stage startups. global venture capital investments in the sector reached $16.6 billion last year. However, the number of early-stage deals have reduced because of greater investor-interest in bigger companies, reports the VC-tracking firm CB Insights.
Last year, Vestigo co-founder Ian Sheridan the company hopes to raise funds between $50 million and $75 million during its first series. A report on Xconomy reads: “The firm is part of a wave of at least 15 early-stage, tech-focused startup funds that have popped up in the Boston area since early 2015. Others include Glasswing Ventures, which closed its first artificial intelligence-focused fund at $112 million in July, and Underscore VC, which raised its second fund ($117 million) in May, two years after raising its debut $85 million fund.”
The company is founded by David Blundin, Founder and Chairman of Cogo Labs; Mark Casady, former CEO and Chairman of LPL Financial; and Managing Director Ian Sheridan. In a press release, speaking of the opportunities in fintech, Casady said, “My partners and I firmly believe incumbents in financial services need to drive down costs and vastly improve the customer experience in order to remain relevant and prosper amidst this wave of change. We back entrepreneurs who have the passion, ideas and ability to ride this wave.”
“Combine Vestigo’s strategic LPs with our advisory board and access to resources from Cogo Labs, a data-driven startup incubator, and the firm is poised to offer early-stage fintech players with more access to data, financial industry expertise and operational experience to help them win,” said Blundin.