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

Carlos Vega
August 27, 2019

Burlingame, CA - August 27th, 2019 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 predicting, 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.

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).

 “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 valuations. 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).

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

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.

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

For more information contact pr@tesorio.com

See How Tesorio Can Boost Your Cash Flow

The cash flow performance platform that helps you manage, predict and collect cash.
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Make It (Ridiculously) Easy to Pay

This sounds silly but including a link to direct payment options will radically increase the chances that you will get paid quickly. The link should take them to a payment gateway that can ideally handle credit card, ACH/EFT, and Wires. Make it stupid simple for the recipient to pay their debt.  For that payment link, as well, make sure that you are sending a secure (https://) domain. With the rise in spearfishing and email fraud targeting company AP departments, it’s important to make the paying feel as secure as possible.

Speed Up the Cadence

Many companies have a practice in collections and accounts receivable management that is to send out the first collections notice when a customer is 15 to 30 days late in paying their invoice. This may be too long to wait. A good amount of research has found that the earlier you notify customers they are late, the more likely you are to get paid. In fact, as often as not, late payment isn’t a conscious decision but an oversight or a reflection of your low priority in the bulging queue of an overworked accounts payable team. With that in mind, you may want to send the first note even if the invoice is a week or even a few days late. Consider, as well, the size of the customer and past customer payment behavior. If a customer pays 30 days late like clockwork, then it may not be worth the effort to accelerate their payment because you are encountering an internal policy of 30 days late payment. (You might be able to learn this information from a quick conversation with your AP team counterpart). 

Consider Whether Advanced Dunning Automation Tools Makes Sense

Most of the ERP systems, such as NetSuite, have some automated dunning campaign features. That said, collections teams may want to consider third-party solutions that give greater flexibility and control over dunning. For example, running campaign tests in many ERP dunning systems is not possible, and creating multiple templates is time-consuming and challenging. If your dunning ERP’s default automation system is boxing you in and is hard to use, you may want to consider shopping around for a collections automation product that has modern software features like team assignments, bulk actions, and multiple-templates. Dunning automation tools can also help you ensure that your emails are actually delivered: just like email marketing, blasting out 1,000 dunning emails in a short span of time will trigger Spam filters and significantly reduce the likelihood that your emails are received, let alone read. Recovering from a Spam catastrophe like this can be painful and require weeks of time working with IT teams. So consider the risk you may be taking before you push send.


After reading this, we hope you will have some ideas on how to think about building out a detailed and effective collections campaign structure. Most of what we talk about here can be turned into a repeatable process that your collections team and accounts receivable managers and analysts can fine tune and revise to improve results. You may want to revisit your process and look at the data a quarter or six months after you first implement. You should see positive results that will convert into improved metrics for Days Sales Outstanding, Average Days Delinquent, and Free Cash Flow. 

Carlos Vega
August 27, 2019
Carlos Vega is the CEO of Tesorio.
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