LEHI — One of the nation's most prolific venture capital firms announced Tuesday it's throwing its considerable resources — and a check for $35 million — behind a Utah tech startup that's disrupting the world of expense account management, and doing it at a breakneck pace.
The news comes just weeks after Lehi-based Divvy closed a Series A round worth $10.5 million and, with the new round, brings the company's fundraising total to $57 million since its inception, about seven months ago.
Insight Venture Partners has been around for over 20 years, has $23 billion in assets under management and just went public with an investment fund of $6.3 billion. A recent report by data analytics firm CB Insights lists Insight Venture as the fourth most active U.S. venture capital firm for the second quarter of 2018, with 18 completed deals.
Now, just days after sharing news about its latest fund, the New York City firm announced it's leading a Series B funding round for Divvy, lauding the company for its ability to effectively revamp, and improve, the way companies track and manage business expenses.
“We are thrilled to partner with Divvy to transform corporate expense tracking from a reactive to proactive process,” Insight Ventures Managing Director Jeff Lieberman said in a statement. “Divvy offers a unified platform that enables real-time decision-making and budget management, ultimately creating operational efficiencies and savings.”
Divvy Vice President of Marketing Sterling Snow told the Deseret News that, immediately after closing its Series A funding, the company was being power-courted by venture capital heavyweights from both coasts. The company ended up with Insight, Snow said, because of the firm's reputation for focusing on helping grow its investment companies and, in part, due to its excellent track record with other Utah tech efforts.
"Insight Venture has been a big backer of top-performing Utah companies and has played a role in building the credibility of our tech scene," Snow said. "They have extensive domain expertise and know how to grow and scale innovation companies."
Divvy's product, which launched in January, features a software platform designed to manage the full breadth of business expense management and enables users to create unique identifiers for every vendor and discrete credit card numbers for each employee that needs one. Purchase limits and restrictions can be pre-set and dynamically altered when necessary and all expense data can be tracked in real time.
Also, the product is free. Divvy earns its money on the banking side of its transactional system.
Anthony Fox, Jane.com's director of finance, told the Deseret News his company, a Lehi-based online retailer of clothing for women and children as well as accessories and home decor, switched to Divvy expense management about five months ago. The change, Fox said, has led to both time savings and more thorough accountability.
"It was simple to set up and I can log in to the (Divvy) interface at any time to review all pending and completed transactions," Fox said. "If anybody is having any issues, I can see it and resolve them easily."
Fox noted the software allows Jane's department managers to oversee and track expenses their staff is accruing, monitor budgets and, if necessary, approve expenditures and adjust permissions for individual employees.
Divvy CEO Blake Murray said the company's platform not only modernizes expense tracking but does so in a way that eliminates expense reports and creates a single-stop solution for fiscal management.
"Every single day, businesses deal with the pain of outdated expense management tools and processes," Murray said in a statement. "Businesses want one place to see and control how their company spends money. Divvy is truly the solution the market has been waiting for.”
Divvy is close to building its list of business customers to the 1,000-mark and is used daily by thousands of employees at client companies. Snow said along with its turbo-charged funding growth, Divvy is also expanding its Utah employee base. At the moment, Divvy employs about 70 but Snow said the company is close to moving to a new Lehi office space and expects that number will exceed 100 by the end of the year.