Retail proprietary trading startup Vest Labs has raised $13 million in a seed round led by Portal Ventures, according to a report by Fortune cited by BlockBeats on Oct. 7. Some executives from Citadel Securities, BlackRock and KKR also joined the round in their personal capacities. The company did not disclose its post-money valuation.
Vest says it lets eligible traders use firm capital to trade perpetual contracts in live markets around the clock, with traders able to keep as much as 80% of the profits while the company takes the rest. The startup said this model differs from some retail prop trading firms that charge for simulated trading accounts, because Vest benefits when traders succeed rather than when they fail.
The new capital will be used to build a mobile app, expand the company’s current 22-person team, and add more assets that can be traded 24/7. Vest also said that as of late September, about 26% of its roughly 27,000 traders had received cash payouts, while monthly active traders and trading volume both rose by more than 300% month over month.
Retail proprietary trading startup Vest Labs has raised $13 million in a seed round led by Portal Ventures, according to Fortune, as cited by BlockBeats on Oct. 7. Some executives from Citadel Securities, BlackRock and KKR also participated in their personal capacities.
Vest did not disclose its valuation after the round.
How the platform operates
Vest says it allows eligible traders to use company capital to trade perpetual contracts in live markets on a 24/7 basis. Traders can keep up to 80% of the profits, with the remainder going to the firm.
The company said this structure sets it apart from some retail prop trading firms that charge users for simulated trading accounts. Under Vest’s model, the firm said, it makes money when traders succeed rather than by betting on their failure.
Use of funds and platform metrics
Vest said the funding will go toward building a mobile app, expanding its current 22-person team, and increasing the number of assets available for round-the-clock trading.
Based on Vest’s own disclosure, as of late September, 26% of the platform’s roughly 27,000 traders had received cash payouts. The company also said monthly active traders and trading volume each increased by more than 300% from the previous month.
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