Fintech startup Vergo bags $4.1M in Seed funding to provide banking for architects, designers, and builders
Summary
The startup also offers a debit account, cashback card, and invoice management software with no annual fees or credit checks.The story of Vergo started way back in a cramped East Village apartment. Vergo CEO and co-founder Rich Kane fell upon the idea for the company after building side hustles in this industry including an interior design studio and carpentry business which got wiped out during Covid. The startup will also use the funding proceeds to scale up the product and operations team in the U.S. and the engineering team in Mexico.As a result of the news on Friday that Brex was breaking with SMBs, Vergo saw an increase of 500% increase in deposits primarily from businesses in the construction industry, which Brex had been targeting a lot over the past year.Getting paid by clients on time, paying contractors, managing invoices, and paying sales taxes were just some of the many other constant daily headaches which made running businesses in this industry hard. In early 2021, Kane made the decision to leave JPMorgan where he was a Senior Vice President in the Technology Strategy team, and partnered with his Mexico City-based co-founder Einar Hohenstein to build Vergo.Vergo said it currently has more than 5,000 businesses on its waitlist. With its capability to streamline this process for all parties involved, Vergo will be an essential tool for architects and designers.Vergo is disrupting fintech for the future of home building, renovation and design, said James Green, general partner, CRV.