Leading vendor management company gains capital to expand software and services for banks and credit unions
For Immediate Release.
Venminder, a leading credit union and bank vendor
management software and services firm, announced today that it completed a $4 million Series B financing round led by Bain Capital Ventures. The company will use the funds to continue development of its robust vendor management software platform as well as to expand its team to support growing demand for outsourced vendor management support.
The funding comes at a time of increased focus by regulators on vendor risk to ensure financial institutions maintain effective third-party management programs. As more financial institutions outsource critical functions to third parties, the task of managing risk factors becomes increasingly complex. Venminder is the perfect solution to organize, track and report findings to Senior Management, the Board of Directors and, ultimately, the examining bodies. It is a “must have” answer to meeting increasing regulatory requirements.
“While financial institutions cannot outsource ownership of vendor risk, they can outsource the tactical work of assessing the risk,” said Dana Bowers, Venminder’s CEO and Founder. “At Venminder we are addressing the tactical challenges of vendor management tasks such as collecting compliance documentation, analyzing a vendor’s financial health, deploying our paralegals to assist with vendor contracts, reviewing a vendor’s SSAE 16 or monitoring a vendor’s cybersecurity posture… we have it all covered.” Foundationally, Venminder’s SaaS based software solution guides a user through critical processes such as risk assessments, due diligence requirements and task management.
Bain Capital Ventures first invested in Venminder in 2013. The initial funding supported the launch of the Venminder cloud-based software platform and additional market research to better understand the needs of financial institutions. Since then, Venminder has experienced a 50%+ growth rate year over year with clients across a broad range of sizes and has established itself as the market leader in outsourced Vendor Management solutions. “We are thrilled to continue our partnership with Dana Bowers and the Venminder team,” said Mike Krupka, Managing Director at Bain Capital Ventures. “We’ve had the privilege of working with Dana since we invested in her last company, iPay, in 2006. iPay provided online bill payment services to credit unions and banks and sold to Jack Henry for $300 million in 2010 and when Dana approached us with the opportunity to invest in Venminder, providing much needed vendor management tools to the same financial institutions that she successfully served with iPay, we jumped at the opportunity.”
“There’s no question that our vendors provide a critical service for the customers of our bank. But keeping up with those vendors had become a real headache for us,” said Wesley Spencer, Chief Information Officer at FNB Bank, Inc. in Kentucky. “We were struggling to effectively and efficiently complete risk assessments, information security and business continuity reviews and financial health assessments of our vendors. And our examiners wanted more from us. That’s when we reached out to Venminder. They don’t just sell a product. They provide an entire solution – the technology, personnel and expertise we needed to get our vendor management program to the level it needed to be.”
“This is an exciting time for Venminder as we continue to expand our product offerings and transform the way financial institutions accomplish the overwhelming job of assessing and managing vendor risk”, said Dana Bowers, Venminder CEO and Founder. “We have a highly qualified staff that is prepared to help our clients produce excellent vendor management examination results in 2016 and beyond.”
Venminder provides a comprehensive suite of credit union and bank vendor management software and services to assess, monitor and manage third-party vendor risks. With their powerful, easy to use software and integrated/additional services, you can outsource some or all of the tactical side of your vendor management.
Venminder’s software and services are unique as they are broken down into modules, so you buy what you need, when you need it. In today’s heavily regulated environment, the Venminder team which consists of certified vendor management specialists (including in-house CPAs, paralegals, CISSPs, coaches and more) prides itself in solving the many challenges of meeting vendor management regulations. Visit www.venminder.com for more information.
About Bain Capital Ventures
Bain Capital Ventures (BCV) partners with disruptive B2B founders to accelerate their ideas to market. The firm invests from seed to growth in enterprise software, infrastructure software and industries being transformed by data. BCV has helped to launch and commercialize more than 200 companies since 1984 including select prior investments in DocuSign, Kiva Systems, LinkedIn, Rapid7, SurveyMonkey and TellApart. BCV has approximately $3 billion of assets under management and offices in the Bay Area, New York City and Boston. Follow BCV at @BainCapVC or visit www.baincapitalventures.com.