Vest Labs Raises $13 Million in Seed Funding to Fuel Proprietary Trading Platform
The retail proprietary trading space has a new contender with substantial backing. Vest Labs recently closed a $13 million seed funding round. The investment was led by Portal Ventures, with participation from individual executives at firms like Citadel Securities, BlackRock, and KKR. The company's valuation post-funding remains undisclosed.
A Shared-Success Model: Aligning Platform and Trader Incentives
Vest operates on a compelling premise: it provides qualified traders with firm capital to trade perpetual contracts in live markets, 24/7. The standout feature is the profit-sharing structure, where traders can keep up to 80% of their profits, with Vest claiming the remainder.
This model creates a fundamental alignment of interests. Vest's revenue is directly tied to the profitability of its traders, distinguishing it from firms that may rely on fees from simulated accounts or profit from trader losses. The company emphasizes that its success is built on the success of its user base.
Growth Metrics and Strategic Use of Funds
Vest reports promising early traction. By late September, the platform had approximately 27,000 traders, with 26% having received at least one payout. Month-over-month growth has been explosive, with both monthly active traders and trading volume increasing by over 300%.
The new capital will be deployed to accelerate growth across several fronts:
- Product Development: A primary focus is building a dedicated mobile application.
- Team Expansion: Scaling the current 22-person team across key functions.
- Asset Diversification: Adding more asset classes available for round-the-clock trading.
This funding round validates Vest's alternative approach in a crowded market. By betting on trader success rather than failure, Vest is positioning itself as a partner to its users, a philosophy that could redefine expectations in retail prop trading.