McLean fintech Verituity has raised $18.8 million to expand the customer base for its software, which helps verify financial transactions quickly and efficiently.
Sandbox Industries of Chicago and San Mateo, California-based Forgepoint Capital led the round, first reported by Axios Pro on Friday. D.C.’s Ardent Venture Partners — led by General Partner and co-founder Phil Bronner — and Santa Monica’s MTech Capital also took part. Forgepoint Capital and Ardent VC led the company’s $10 million Series A round in 2021.
It’s a rare new funding round for a fintech company during a slowdown for the industry overall. Worldwide venture capital funding for financial technology companies fell by roughly 50% between 2022 and 2023.
It’s unclear whether the entire $18.8 million raise announced Friday is fresh capital or whether it includes the company’s initial $10 million Series A raise.
We’ve reached out to the company for more information and will update this story with any response.
Verituity was started in 2020 by a management consulting firm then known as The Mita Group Inc. that rebranded to Verituity after incubating and launching its verified digital payout software. Verituity’s business has skyrocketed from processing roughly $13 million payouts in 2022 to over $2.6 billion in the past year, according to investor Forgepoint.
The company helps banks, insurance companies and others pay out refunds and insurance claims, verifying each step of the process, including the legitimacy and accuracy of the accounts and people involved. Customers include financial giants such as BNY Mellon, Citizens Bank and Assurant.
The new financing will help it expand its customer base particularly into new industries such as mortgage servicing and energy, the firm said in a press release, in addition to allowing it to continue investing in its software’s artificial intelligence models.
It also comes as MasterCard inked a partnership with Verituity earlier this year in which the startup is white labeling the MasterCard Move offering, which provides cross-border payments and disbursements for businesses and individuals.
Sandbox Industries Managing Partner and co-CEO Chris Zock will join Verituity’s board, joining existing board members Bronner and Don Dixon, co-founder and managing director at Forgepoint Capital.
