Tesorio Launches AI-Driven Cash Flow Performance Platform for Finance Teams; Closes $10M Series A

Madrona Venture Group Led the Round Which Includes Previous Investors and Public Company CFOs Who Understand the Challenge of Managing, Predicting and Collecting Cash

BURLINGAME, Calif.–(BUSINESS WIRE)–Tesorio (tesorio.com) today announced a $10M Series A funding round led by Madrona Venture Group with participation from existing investors, including First Round Capital, Floodgate, Y Combinator, Fathom Capital, and Fuel Capital. The company also unveiled its cash flow performance platform which empowers finance teams with AI-driven insights to manage, predict, and collect cash.

Tesorio’s cash flow performance platform applies machine learning to key financial data to help customers like Veeva Systems, Box, and WP Engine with accounts receivable automation including smart workflow tools, predicted pay dates, and automated collections forecasting. Tesorio also serves other groups, such as 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. This trend of unifying organizations around finance is something KPMG is predicting1, recently stating that “Over the next two years, we expect finance functions to undergo the greatest technological transformation since the 90s and Y2K ramp-up”. Learn more about cash flow performance here [https://www.tesorio.com/cash-flow-performance].

Tesorio also has angel funding from a cadre of respected CFOs who have experienced first-hand how finance teams can lead data-driven transformation including Jeff Epstein, former CFO of Oracle; Ron Gill, former CFO of NetSuite; and Greg Henry, CFO of Couchbase and former SVP of Finance at ServiceNow. Jeff Epstein and Gabriel Luna-Ostaseski, from Upshift Capital (also an investor), have joined as advisors in strategy and go-to-market, respectively. Learn more about what CFOs have to say here [https://www.tesorio.com/resources].

“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 Carlos Vega, Tesorio Co-Founder and CEO. “Research backs this up, showing that companies that optimize the performance of their cash flow grow faster driving up stock prices and company valuations2. 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 AI on $56 billion in payments, 10 million invoices, and nearly 5 million user activities. 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. The funding 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.

“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,” said Hope Cochran, Managing Director, Madrona Venture Group, who joins 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.”

“Tesorio has become a highly effective cash flow resource management and intelligence layer for our collections and treasury teams,” said Tim Cabral, CFO of Veeva Systems. “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 such as 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. Learn more via Tesorio case studies here [https://www.tesorio.com/resources].

About Tesorio

Founded in 2015 by Carlos Vega, CEO and Fabio Fleitas, CTO, Tesorio is the cash flow performance platform, which Accounts Receivable, Treasury, and FP&A teams use to manage, predict, and collect cash. Its AI processes over $30 billion in transactions each year for companies ranging from 50 to 10,000 employees. Tesorio serves customers around the globe with AR automation and cash flow forecasting, across verticals including software, manufacturing, retail, finance, and pharmaceuticals.

For a free assessment of your company’s accounts receivable or cash flow forecasting effectiveness, and to learn how your team can benefit from day one with Tesorio’s platform, please contact sales@tesorio.com. We will respond to you in 24 hours or less.

If you’re interested in joining our team, please visit https://www.tesorio.com/careers.

About Madrona Venture Group (Lead in Series A)

Madrona invests predominantely in seed and Series A rounds across the information technology spectrum, including consumer Internet, commercial software and services, digital media and advertising, networking and cloud computing. Madrona manages nearly $1.7 billion and was an early investor in companies such as Amazon, Apptio, Rover.com, and Redfin. www.madrona.com

About First Round Capital (Lead in Seed Round)

First Round is a seed-stage venture firm focused on building a vibrant community of technology entrepreneurs and companies, including Uber, Square and Warby Parker. Through custom-built software, incredible in-person experiences, and a host of other unique services, we help tiny companies get big while constantly reimagining the role of venture capital. www.firstround.com

Other Investors

Fathom Capital – www.fathomcap.com

Floodgate – www.floodgate.com

Fuel Capital – www.fuelcapital.com

Hillsven (founders of Ariba) – www.hillsven.com

Mango Capital – www.mangocap.com

Xplorer – www.xplorer.vc/

Y Combinator – www.ycombinator.com

1“On the 2019 Audit Committee Agenda” – https://home.kpmg/content/dam/kpmg/ch/pdf/on-the-2019-audit-committee-agenda.pdf

2“The Cash Conversion Cycle Spread” – https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2964330

Contacts

Erika Shaffer, erika@madrona.com, 206-972-5514

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