How Mercantile Extends Their Runway With Vesto

Mercantile is a leading fintech startup that builds industry-specific credit cards for small businesses. Led by CEO and serial entrepreneur Samuel Poirier, they’ve raised $22MM in total, from Index Ventures, 8VC, General Catalyst, SV Angel and BoxGroup.

In 2022, Mercantile began using Vesto to put their treasury on autopilot.

We sat down with Founder/CEO Samuel, to learn more about: 

  • Mercantile’s biggest treasury management pain points, before Vesto
  • What changed with Vesto 
  • How using Vesto feels, compared to big banks and other fintechs
  • What differentiates Vesto from other corporate treasury services
  • And much more… 

How did you manage your cash before Vesto?

Prior to Vesto, we didn’t use any other solutions to manage our corporate treasury and struggled to decide on how to allocate our treasury in a way that maximized both yield and safety. Most banks didn’t provide the customization options that we were looking for—and it's nearly impossible to talk with anyone at a bank who is actually interested in helping startups.

 

Talk about solutions/alternatives that you tried. Why didn’t they work?

Most banks offered unattractive rates, and working with an older institution is both expensive and prohibitive. Neobanks and other newer treasury solutions worked slightly better from a technology standpoint, but the main problem was trust. We evaluated all the options on the market, and Vesto seemed to us as the most trustworthy. We knew that working with Vesto would mean two things: 1) our funds earn a high yield, and 2) most importantly, they’d also be safe. 

What value does Vesto provide to you and your business—what convinced you to onboard? 

Vesto’s customization options are unlike any bank or neobank, and we didn’t have to change up our entire financial suite in order to benefit from Vesto’s product. As a founder, you want to know that your funds are working in the best way for your company specifically. Vesto does just that, which was one of the main selling points for us. 
Additionally, the level of reporting detail and insights that Vesto’s product generates allows us to constantly assess our position in light of market changes—that enables us to feel confident that our cash is in the best place possible.  

How does using Vesto feel compared to other solutions / alternatives at big banks or other companies? 

When you onboard with Vesto, you can tell that there’s a real human, personal element behind the product. It just “works”—you can connect your bank account in minutes and immediately start earning on your corporate cash. There’s care and attention to the design, the onboarding flow, and every part of the product. That goes a long way. The entire Vesto experience is night and day different from trying to onboard with a big bank, or even working with many neobanks.
As a founder, I want to know that my cash is safe, working for me, and extending my runway—and I want to get set up with a customized solution as fast as possible. Vesto does exactly that, which is just one of the reasons their product “feels” entirely different than working with a big bank. Additionally, the team is amazing. The Vesto team has experienced the exact pain points that they built Vesto to solve. That’s huge, because it means they actually understand founder psychology, and know how to create a product that meets our needs. 

In your mind, what’s the biggest thing that differentiates Vesto from other treasury management companies?

One of the biggest ways Vesto differentiates itself is by allowing startups to earn yield on their corporate cash without needing to move around their entire financial suite. Contrast that with many neobanks and banks, where you can only start benefiting from their product after you’ve moved your entire financial life over—which usually entails tons of red tape. 
Vesto makes it incredibly easy to connect your account, transfer funds, and start seeing yield on your cash. Additionally, Vesto’s customized investment policies are tailored exactly to our startups liquidity needs, goals, and risk profile. It’s not just a “one size fits all” investment solution, which is what we found most competitors offer. 
Lastly, Vesto’s automation tools make it easy to see exactly how much we’re earning, how we can better invest our capital, and how we can make better financial decisions to extend our runway. 

What’s your favorite thing about Vesto?

The product works great, but my favorite thing about Vesto is their team—and their commitment to building products that founders and finance teams can use with minimal friction. Vesto does this, which I think is their biggest, ultimate differentiator. You can feel it through all aspects of the product. 

Customers have not or will not be compensated in any way when providing testimonials or case studies. Samuel Poirier is an investor in Vesto, resulting in a conflict of interest as he has a direct interest in the success of the Company. The case study provided is for informational purposes only and should not be construed as investment advice or a recommendation to engage in any specific investment strategy or transaction. The content should not be construed as an offer or solicitation for the purchase or sale of any financial instruments or securities.

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