- Tesorio announced it has raised $10 million in Series A funding led by Madrona Venture Group.
Tesorio announced it raised $10 million in Series A funding led by Madrona Venture Group with participation from existing investors, including First Round Capital, Floodgate, Y Combinator, Fathom Capital, and Fuel Capital. And Tesorio also unveiled its cash flow performance platform which empowers finance teams with AI-driven insights to manage, predict, and collect cash.
The company’s cash flow performance platform is known for applying machine learning to key financial data to help customers like Veeva Systems, Box, and WP Engine with accounts receivable automation such as smart workflow tools, predicted pay dates, and automated collections forecasting. And Tesorio also serves other groups like sales, customer experience, and Audit Committees — who leverage cash insights to gain more perspective into customer health and to migrate away from running critical cash workflows in Excel.
Founded in 2015 by CEO Carlos Vega and CTO Fabio Fleitas, Tesorio had also received angel funding from a number of respected CFOs who have experienced first-hand how finance teams can lead data-driven transformation such as former Oracle CFO Jeff Epstein, former NetSuite CFO Ron Gill, and Couchbase CFO Greg Henry. Epstein and Gabriel Luna-Ostaseski from Upshift Capital (also an investor), have joined as advisors in strategy and go-to-market, respectively.
“Access to capital and strong free cash flow generation are among the biggest determinants of a company’s ability to grow. It also affords management the freedom to optimize for long-term growth and innovation,” said Vega. “Research backs this up, showing that companies that optimize the performance of their cash flow grow faster driving up stock prices and company valuations. With insights from our customers, we’ve built a platform that finance teams use daily as the main tool to do their work. The announcement of our Series A is an exciting milestone that enables our own long-term thinking, helping us to continue prioritizing our mission to democratize access to financial best practices and to expand how we serve our customers.”
Tesorio’s cash flow performance platform has trained its artificial intelligence on $56 billion in payments, 10 million invoices, and nearly 5 million user activities. And the company grew revenue 4X year-over-year in 2018 and works with SMBs, mid-cap, and enterprise customers including one of the largest banks in the world.
“As a CFO for many years, and now as an investor and public company board member, I know first-hand the pain of unforeseen cash issues,” added Madrona Venture Group managing director Hope Cochran — who is joining Tesorio’s board as part of the funding. “But finance systems today don’t address this—even though strong free cash flow is the most important indicator of company health. Tesorio applies AI to automate manual cash flow analysis and to improve and inform decisions that impact free cash flow. We are excited to work with Carlos, Fabio, and their team to bring intelligent applications around cash to the office of the CFO.”
This funding round will be deployed to accelerate technology development including integration of new partners and data sources to deepen enterprise functionality and to expand go-to-market initiatives.
“Tesorio has become a highly effective cash flow resource management and intelligence layer for our collections and treasury teams,” explained Veeva Systems CFO Tim Cabral. “It helps us manage our aging in a very efficient way, thereby improving our collections metrics and improving the accuracy of our forecasting in this area. We are also using the tool to effectively hedge our foreign exchange risk. These critical business process areas are now managing in a more streamlined way, given the intuitive nature of the Tesorio UI.”
Tesorio’s customers report benefits like 10-day reductions in DSO, 50% reductions in aging over 90 days, 75% reductions in bad debt write-offs, and 2x improvements in collection team efficiency.
