Historic problems require modern solutions, and for businesses in the payment and financing space, Verdata has just the platform to help. Where many of these businesses have typically depended on manual processes to manage their buyer-seller relationships, Verdata is working to help optimize things with the power of automation.
The startup announced a $3 million round of seed funding from investors spanning areas like fintech, lending and analytics. Some of this round’s participants include former CEO of Transunion Bobby Mehta, Avant co-founder Al Goldstein and Argus co-founder Michael Heller. The capital will help Verdata invest in its platform that provides clients with insights to help mitigate counterparty risk.
Serving sellers ranging from home improvement contractors to online merchants, Verdata’s software works to help point-of-sale financing companies find the best partners for their business. It gathers data on counterparties’ prior behavior to identify which ones could pose the highest risk to a company as a financial partner. The platform “provides historical and forward-looking insights on the 30 million U.S. sellers that offer a financeable good or service,” Mike Mondelli, Verdata’s CEO, told Built In via email.
“Payment and financing companies struggle with managing counterparty relationships,” Mondelli said. “Verdata combines the required datasets with analytical insights to automate accurate real-time onboarding and monitoring of counterparties, enabling confident growth for our clients.”
Verdata is investing its seed funding in furthering its team, investing in its products and expanding into new markets. This growth will consist of building its technical and product teams and environments as well as expanding its sales and marketing capabilities, Mondelli said.
The company plans to expand its workforce over the next two years, according to Mondelli. Headquartered in Virginia, most of Verdata’s workforce is based in Atlanta, where the company is currently hiring a full stack developer.
“In Verdata’s future we anticipate continued growth in our data coverage to broaden our seller insights into the areas of elective medical, health and beauty, veterinary and electronics,” Mondelli said. “Additionally, we plan to release several new analytic solutions based on our existing and expanded data sets throughout the second half of 2022.”