BankTech Ventures, an investment vehicle backed by several community banks, has invested in Vero Technologies, a wholesale financing and loan servicing platform.
Vero said in a press release that it raised $8.5 million of Series A funding led by BankTech Ventures. Other participants included the Independent Community Bankers of America, Sopra Steria Ventures, Antler, Arcadia Funds and AAF Management.
Vero said it will use the capital to accelerate the growth of its lending-as-a-service (LaaS) offering. The platform, which leverages open banking technology, allows banks to extend wholesale financing to manufactured goods dealers.
“We’ve been fortunate to build a viable product and achieve initial market penetration with minimal funding to date,” John Mizzi, Vero’s CEO. “This investment will enable us to build our growing footprint with community and regional banks across the country and enhance our platform’s capabilities.”
The general partners for BankTech, which closed its first fund in August 2022, are the ICBA, Sunwest Bank, Coast Financial, Hovde Group and The Venture Center.