Vendasta lands $40 mln in funding, CBGF leads $25 mln


Photo courtesy of Brendan King/Twitter

Vendasta, a Saskatoon-based white-label software company, has raised $40 million in its latest financing.

Canadian Business Growth Fund (CBGF) led a $25 million round. It adds to a $15 million investment made in May, led by Comporium Inc and Saskworks Venture Fund and joined by Vanedge Capital and BDC Capital‘s IT Venture Fund.

Vanedge and BDC backed Vendasta’s $8.25 million financing in 2013.

Founded in 2008, Vendasta provides a cloud commerce platform to channel partners that assist small and mid-sized businesses with their digital needs. Its products are are sold by more than 1,200 agencies and over 25,000 salespeople.

Led by CEO Brendan King, Vendasta will use the funds raised for new hires, enhancing the platform, and expanding into new customer channels.

Photo: Brendan King, co-founder and CEO of Vendasta Technologies.

(This post’s title was corrected to say Canadian Business Growth Fund led $25 million of the round.)

PRESS RELEASE

Vendasta raises $40M in growth capital

SASKATOON, SK, July 17, 2019 /CNW/ – Vendasta, a cloud commerce platform for companies that provide digital solutions to small and medium businesses (SMBs), has raised $40 million in growth funding, $25M of which was led by the Canadian Business Growth Fund (CBGF) in addition to an earlier round in May of $15M led by Comporium, Inc and Saskworks Venture Fund Inc. with participation from existing investors Vanedge Capital LP and BDC Capital IT Venture Fund. With these investments, the technology company plans to expand its Saskatoon-based team from 285 people to 650 in the next three years.

It marks the single largest information and communication technology investment in the prairies since the Canadian Venture Capital Private Equity Association (CVCA) started collecting data in 2013.

The funds will be used to enhance the Vendasta Platform, including its owned and operated product suite and robust Marketplace of digital solutions. The company will accelerate its expansion into new customer channels such as banks, telcos, insurance companies and other enterprise organizations looking for a scalable technology solution to serve their SMB customers.

“SMBs worldwide are purchasing and relying on cloud-based software more than ever before. It’s projected that SMB spend on software as a service (SaaS) solutions will represent a $76 billion market opportunity in the US alone by 2020. They’re turning to trusted local experts to provide that software, and we are uniquely positioned to empower those experts with our cloud commerce platform,” said Vendasta CEO Brendan King.

An SMB who wants to move portions of their business online has to choose from more than 71,000 SaaS solutions to manage marketing, productivity, protection, operations, connectivity, and other business needs. The SMB often turns to familiar local experts, like telcos, marketing agencies, banks, media companies, and more to help manage their digital needs. The Vendasta Platform helps the trusted experts bring everything together in a cohesive experience for the SMBs they serve.

“At the end of the day, we’re passionate about driving local economies and helping small businesses succeed,” says King.

“The team is agile, smart, fun and they aren’t afraid of hard work. I’ve watched the company build, adapt, and over-deliver product and customer service, showing its true prairie roots of accountability. They have built a solid foundation, and they are just getting going,” said Amy Rae, Principal at Vanedge Capital.

“We are excited to partner with Brendan and his team, who are building a world class company and an excellent culture. In doing so, Vendasta is attracting talented technology professionals from around the world to Saskatoon as they grow and scale,” said George Rossolatos, CEO at CBGF.

According to the CVCA’s 2018 VC & PE Canadian Market Overview, $3.7 billion was invested in Canadian companies last year, of which eight deals in Saskatchewan made up $16 million of the total national investment (compared to $100 million in Alberta and $29 million in Manitoba). In the first quarter of 2019, $1 billion worth of investments were made in Canada, including three Saskatchewan deals totaling $19 million.

About Vendasta:

Vendasta is a software company that builds a platform for helping local businesses with their digital needs. Sold exclusively through channel partners — including agencies, broadcasters, publishers, banks, telecoms, and more — the Vendasta platform enables sales professionals to brand it as their own and provide re-sellable products and services to local businesses around the world. Vendasta has been named one of the 50 fastest growing technology companies in Canada and one of the top 500 fastest growing companies in North America by Deloitte. It has also been listed on Canadian Business Magazine’s Growth 500 for three consecutive years. For more information, visit www.vendasta.com.

For further information: Media Contact Information: Rylan Morris, Director of Product Marketing, Vendasta, Mobile: +1-306-850-4609, Office: +1-306-955-5512 (ext. 112), RMorris@Vendasta.com