Latest news with #SpectrumEquity
Yahoo
9 hours ago
- Business
- Yahoo
Quavo's AI-Powered Platform Grabs $300M To Combat Mounting Financial Fraud
Fraud and dispute management provider Quavo has secured $300 million from private investment firm Spectrum Equity. At the same time, prior investor FINTOP Capital is selling its stake. Significant shareholders after the departure will include Pegasystems and four executives who founded the company. The Wilmington, Delaware fintech sells software-as-a-service products that "automate and manage fraud and dispute management for financial institutions." According to the company, it processes over 12.5 million customer disputes annually for a broad spectrum of financial institutions, including global issuers, credit unions and regional banks, and says its revenue has grown 60% annually since 2022 and 100% in the last year. Don't Miss: The same firms that backed Uber, Venmo and eBay are investing in this pre-IPO company disrupting a $1.8T market — Accredited Investors: Grab Pre-IPO Shares of the AI Company Powering Hasbro, Sephora & MGM— The capital infusion follows an initial seed round in 2020 and three Series A rounds between 2021 and 2023, totaling $11 million. Actual cash raised in the seed round was not undisclosed. "Quavo is uniquely positioned to drive automation benefits and better outcomes in this space," said Spectrum Equity Managing Director Adam Margolin. "Quavo's highly configurable platform, scaled transaction data powering its decisioning engine, and mission-driven approach to solving costly and time-consuming problems for its clients set the company apart." Quavo's QFD automates the investigation of credit card chargebacks and other conflicts through the dispute lifecycle, from intake and investigation to chargeback and client communication workflows. KeyCorp (NYSE:KEY) is listed as one of Quavo's more than 50 direct customers, along with Associated Banc-Corp (NYSE:ASB) and First Hawaiian Bank (NYSE:FHB). Trending: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can The company says its software works across all payment methods and dispute types, offering "easy customization through a decisioning engine and library of third-party API" add-ons. The company also markets a fully managed service called Dispute Resolution Experts, staffed by a team of fraud specialists. This program allows greater flexibility for clients, at a higher cost, while also applying QFD technology for fraud and dispute resolution. "We are thrilled to be partnering with Spectrum Equity on the next chapter of growth," said Quavo cofounder and CEO Joseph McLean, who started the company in 2016. He added the investment will be used to "accelerate our AI-led product development initiatives and expand our go-to-market and client success teams to meet growing market demand and drive exceptional client outcomes." Quavo says it is leveraging advanced AI to tackle rising fraud threats in 2025 and breaks down this initiative into four related projects: Using investigative AI to detect differences between first-part fraud and true fraud. Streamlining complex and repetitive processes using large language models. Automating tasks like accountholder correspondence and the evidence that merchants need to provide when disputing a chargeback. Enhancing call center intake that's powered by generative says its tech automates approximately 80% of the tasks and interactions typically undertaken by clients in a customer dispute while recapturing 85% of "potentially lost disputed funds." It says clients benefit from improved outcomes, posting an average 37% reduction in write-offs, while reducing days to issue consumer credit dropping to less than one from 11. "Our vision to restore financial trust and simplify fraud and disputes is unwavering, concludes McLean, "and this partnership allows us to achieve these goals faster and at even greater scale." Read Next: $100k+ in investable assets? – no cost, no obligation. Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Quavo's AI-Powered Platform Grabs $300M To Combat Mounting Financial Fraud originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Finextra
23-07-2025
- Business
- Finextra
Quavo secures $300M growth investment from Spectrum Equity
Quavo, Inc. ('Quavo'), a leading provider of cloud-based software that automates and manages fraud and dispute processes for financial institutions, today announced a $300 million investment by leading growth equity investment firm Spectrum Equity to accelerate investments across the business and drive innovation and value for customers. 0 Quavo is the category leader in end-to-end dispute management software, solving a mission-critical challenge for banks, credit unions and fintechs by streamlining every step of the consumer transaction dispute process. Quavo's solutions enable financial institutions to deliver faster, more transparent, and more reliable dispute resolutions for account holders - helping build trust, strengthen loyalty, and modernize the way institutions engage with their account holders. QFD, the company's flagship solution, automates the intake, investigation, chargeback, recovery, and client communications workflows across all payment methods and dispute types while ensuring regulatory compliance and enhancing the account holder experience. With Quavo, clients automate ~80% of the tasks and interactions involved in resolving a typical consumer dispute and recapture ~85% of potentially lost disputed funds. These gains are achieved through Quavo's workflow automations, its sophisticated decisioning engine, and a comprehensive library of 3rd party API integrations. Clients unlock efficiencies while improving outcomes: the average client sees a 37% reduction in write-offs and reduces days to issuing consumer credit from 11 to less than one. For clients who prefer not to manage disputes in-house or rely on a third-party outsourcer, Quavo offers Dispute Resolution Experts (DRE), a fully managed service offering that combines QFD technology with active management delivered by Quavo's team of specialists. Founders Joseph McLean, David Chmielewski, Daniel Penne, and Richard Jefferson launched Quavo in 2016 based on their learnings from building the dispute management systems in-house at Bank of America. Since the launch of its SaaS platform, Quavo has seen rapid market adoption, growing revenues 60% annually since 2022. Today the Company automates over 12.5 million consumer disputes annually on behalf of a broad spectrum of financial institutions, from large global issuers and fintechs to regional banks and credit unions, delivering consistent performance across all institution types. Quavo is committed to ongoing product innovation, pioneering the application of artificial intelligence to improve dispute-resolution outcomes through its proprietary decisioning engine. Leveraging its cross-institution transaction data paired with third-party data integrations, Quavo is continually improving its decisioning engine and workflows to drive increased automation and better outcomes for its financial institution clients and their account holders. 'We are thrilled to be partnering with Spectrum Equity on the next chapter of growth at Quavo,' said Joseph McLean, Co-Founder and CEO of Quavo. 'With this new investment, we intend to accelerate our AI-led product development initiatives and expand our go-to market and client success teams to meet growing market demand and drive exceptional client outcomes. Our vision to restore financial trust and simplify fraud and disputes is unwavering, and this partnership allows us to achieve these goals faster and at even greater scale.' 'Fraud and dispute management is a massive business-as-usual problem for financial institutions and fintechs alike, and we believe that Quavo is uniquely positioned to drive automation benefits and better outcomes in this space,' said Adam Margolin, Managing Director at Spectrum Equity. 'Quavo's highly configurable platform, scaled transaction data powering its decisioning engine, and mission-driven approach to solving costly and time-consuming problems for its clients set the company apart. We couldn't be more excited by the opportunity to back Joe and the rest of the Quavo team going forward.' Existing investor FINTOP Capital will sell their ownership stake in the transaction; the company thanks them for their many contributions to Quavo's accomplishments to date. Quavo's co-founders and Pegasystems, which has been a strategic investor and technology partner to Quavo since the company's founding, will all remain significant shareholders following the transaction. Additional terms of the transaction have not been disclosed. KeyBanc Capital Markets served as exclusive financial advisor and Goodwin Proctor served as legal advisor to Quavo. Latham & Watkins served as legal advisor to Spectrum Equity.
Yahoo
22-07-2025
- Business
- Yahoo
Quavo Fraud & Disputes Secures $300 Million Growth Investment from Spectrum Equity
Transaction follows a period of sustained growth and product innovation, where Quavo has emerged as the leading fraud and dispute management platform for financial institutions WILMINGTON, Del., July 22, 2025 (GLOBE NEWSWIRE) -- Quavo, Inc. ('Quavo'), a leading provider of cloud-based software that automates and manages fraud and dispute processes for financial institutions, today announced a $300 million investment by leading growth equity investment firm Spectrum Equity to accelerate investments across the business and drive innovation and value for customers. Quavo is the category leader in end-to-end dispute management software, solving a mission-critical challenge for banks, credit unions and fintechs by streamlining every step of the consumer transaction dispute process. Quavo's solutions enable financial institutions to deliver faster, more transparent, and more reliable dispute resolutions for account holders – helping build trust, strengthen loyalty, and modernize the way institutions engage with their account holders. QFD, the company's flagship solution, automates the intake, investigation, chargeback, recovery, and client communications workflows across all payment methods and dispute types while ensuring regulatory compliance and enhancing the account holder experience. With Quavo, clients automate ~80% of the tasks and interactions involved in resolving a typical consumer dispute and recapture ~85% of potentially lost disputed funds. These gains are achieved through Quavo's workflow automations, its sophisticated decisioning engine, and a comprehensive library of 3rd party API integrations. Clients unlock efficiencies while improving outcomes: the average client sees a 37% reduction in write-offs and reduces days to issuing consumer credit from 11 to less than one. For clients who prefer not to manage disputes in-house or rely on a third-party outsourcer, Quavo offers Dispute Resolution Experts (DRE), a fully managed service offering that combines QFD technology with active management delivered by Quavo's team of specialists. Founders Joseph McLean, David Chmielewski, Daniel Penne, and Richard Jefferson launched Quavo in 2016 based on their learnings from building the dispute management systems in-house at Bank of America. Since the launch of its SaaS platform, Quavo has seen rapid market adoption, growing revenues 60% annually since 2022. Today the Company automates over 12.5 million consumer disputes annually on behalf of a broad spectrum of financial institutions, from large global issuers and fintechs to regional banks and credit unions, delivering consistent performance across all institution types. Quavo is committed to ongoing product innovation, pioneering the application of artificial intelligence to improve dispute-resolution outcomes through its proprietary decisioning engine. Leveraging its cross-institution transaction data paired with third-party data integrations, Quavo is continually improving its decisioning engine and workflows to drive increased automation and better outcomes for its financial institution clients and their account holders. 'We are thrilled to be partnering with Spectrum Equity on the next chapter of growth at Quavo,' said Joseph McLean, Co-Founder and CEO of Quavo. 'With this new investment, we intend to accelerate our AI-led product development initiatives and expand our go-to-market and client success teams to meet growing market demand and drive exceptional client outcomes. Our vision to restore financial trust and simplify fraud and disputes is unwavering, and this partnership allows us to achieve these goals faster and at even greater scale.' 'Fraud and dispute management is a massive business-as-usual problem for financial institutions and fintechs alike, and we believe that Quavo is uniquely positioned to drive automation benefits and better outcomes in this space,' said Adam Margolin, Managing Director at Spectrum Equity. 'Quavo's highly configurable platform, scaled transaction data powering its decisioning engine, and mission-driven approach to solving costly and time-consuming problems for its clients set the company apart. We couldn't be more excited by the opportunity to back Joe and the rest of the Quavo team going forward.' Existing investor FINTOP Capital will sell their ownership stake in the transaction; the company thanks them for their many contributions to Quavo's accomplishments to date. Quavo's co-founders and Pegasystems, which has been a strategic investor and technology partner to Quavo since the company's founding, will all remain significant shareholders following the transaction. Additional terms of the transaction have not been disclosed. KeyBanc Capital Markets served as exclusive financial advisor and Goodwin Proctor served as legal advisor to Quavo. Latham & Watkins served as legal advisor to Spectrum Equity. About Quavo Quavo is a leading technology partner and strategic advisor, helping financial institutions build trust-driven customer relationships through faster, more transparent dispute resolutions. Our mission is to restore financial trust by simplifying fraud and disputes. Quavo's award-winning technology automates the entire dispute lifecycle, from intake to resolution. Financial Institutions can pair this end-to-end solution with our expert-led back-office investigation team in one turnkey managed service. Scalable for institutions of all sizes, Quavo's solutions reduce losses, ensure compliance, and enhance customer loyalty. Learn more at About Spectrum Equity Spectrum Equity is a leading growth equity firm providing capital and strategic support to innovative companies in the information economy. For nearly 30 years, the firm has partnered with exceptional entrepreneurs and management teams to build long-term value in market-leading internet-enabled software, data, and information services companies. With offices in Boston, San Francisco, and London, the firm is investing its tenth fund with $2 billion in limited partner capital. Representative investments include Ancestry, Definitive Healthcare, GoodRx, Lucid Software, Origami Risk, Ethoca, SurveyMonkey and Verafin. For more information, including a complete list of portfolio investments, visit: Quavo Media Contact:Julia LumPR & Events Spectrum Equity Media Contact: Margaret JonesDirector, Content & Communicationsmjones@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
Awardco Raises $165 Million, Surpasses $1 Billion Valuation
Sixth Street Growth and Spectrum Equity join existing investors General Catalyst and Ryan Smith, Partner at HXCO, in a strategic round of financing to fuel a new era in the employee rewards, recognition and engagement space. SALT LAKE CITY, May 20, 2025 /PRNewswire/ -- Awardco announced today a $165 million Series B round of funding with a valuation that eclipses $1 billion, further solidifying its leadership and innovation in the employee rewards and recognition space. By powering recognition for customers like AT&T, Pacific Life, Adobe, and Hertz, Awardco has grown to over six million users across 163 countries and offers more than 300 million reward options. This rapid expansion is reshaping employee experience worldwide and positioning Awardco as the leading force in workplace technology. With this new investment, the company will broaden its rewards and recognition platform with additional solutions for employee engagement and performance, leverage AI to drive deeper employee insights and automations, enhance HRIS and partner integrations, and scale its global infrastructure to power the next era of work. "We're transforming work by making recognition a seamless part of everyday culture and the engine that powers employee engagement," said Steve Sonnenberg, Co‑Founder and CEO of Awardco. "This investment also allows us to further scale the world's largest configurable rewards marketplace, empowering organizations to recognize employees in ways that are meaningful, flexible, and truly valued." "Our mission isn't changing, it's expanding," said Tanner Runia, President and Co‑Founder of Awardco. "Guided by our customers' evolving needs, we're taking recognition into new areas where it's delivering even greater impact. We enter this next phase from a position of strength, with sustained high growth and a cash‑flow‑positive business, focused on executing at an even larger scale." In addition to this exceptional expansion of capabilities, Awardco's new London office has fueled rapid growth across the EMEA market, further reinforcing its global momentum as the leader in employee rewards and recognition. As more organizations increasingly turn to Awardco for recognition, engagement and incentives, the platform has solidified its reputation as a true culture engine—earning a place among G2's Top 100 Software Products. "Recognition is no longer a nice-to-have—it's a strategic imperative," said Nari Ansari, Managing Director and Susie Liu, Vice President at Sixth Street Growth. "Awardco is leading the way with a scalable, global-first platform that serves organizations of all sizes, and we're excited to partner with the team during this next phase of growth." "Awardco's rapid innovation, exceptional customer satisfaction, and flexible platform set it apart," said Adam Gassin, Principal at Spectrum Equity. "Organizations across industries are using Awardco to rally teams around their top strategic, operational, and cultural priorities, and we're excited to help accelerate the company's vision for its customers and the category." Awardco's leadership also continues to grow through bold initiatives like the annual RCGNZ Summit in Park City, Utah, one of the premier events in HR Tech. With new capital and a bold vision, Awardco is building a world where work is more meaningful, connected, and rewarding. Union Square Advisors LLC acted as financial advisor to Sixth Street Growth in connection with the investment. About Awardco Awardco builds culture, incentivizes behavior, and powers modern engagement through employee recognition and rewards. Trusted by 3,000+ organizations, including Fortune 500 leaders, Awardco offers the world's largest reward network—no hidden fees, no inflated markups. With the flexibility to create recognition, incentive, milestone, and behavior-driven programs, Awardco drives engagement, improves retention, and delivers significant cost efficiencies. The company is headquartered in Lindon, Utah. Learn more about Awardco at About Sixth Street GrowthSixth Street Growth makes investments in mid- and late-stage technology companies. The Sixth Street Growth team partners with founders and management teams to provide differentiated capital solutions to accelerate organic and inorganic growth. Sixth Street Growth is the dedicated growth investing platform of Sixth Street, a leading global investment firm with over $100 billion in assets under management and committed capital. Sixth Street has invested over $10 billion in more than 70 companies through its Growth franchise since inception. Select Sixth Street Growth investments include Airbnb, AvidXchange, Bloomreach, Clio, Gainsight, Kaseya, Keyfactor, MasterControl, MDLIVE, Seeq, Spotify, Stripe, and Sprinklr. For more information, visit and follow Sixth Street on LinkedIn. About Spectrum EquitySpectrum Equity is a leading growth equity firm providing capital and strategic support to innovative companies in the information economy. For over 30 years, the firm has partnered with exceptional entrepreneurs and management teams to build long-term value in market-leading software, data, and consumer internet businesses. With offices in Boston, San Francisco, and London, the firm is investing its tenth fund with $2 billion in limited partner capital. Representative investments include AllTrails, Ancestry, Definitive Healthcare, GoodRx, Lucid Software, Origami Risk, SurveyMonkey, Teachers Pay Teachers, and Verafin. Learn more about Spectrum Equity at Media Contact:press@ View original content to download multimedia: SOURCE Awardco Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
20-05-2025
- Business
- Wall Street Journal
Awardco Valuation Passes $1 Billion With Latest Private-Equity Bet
Sixth Street Partners led a $165 million minority investment alongside Spectrum Equity to back the growth of Awardco, pushing the employee-rewards company's valuation to more than $1 billion. The latest cash infusion marks a step up from the Lindon, Utah, company's roughly $900 million valuation in 2021, when it raised $65 million from venture-capital firm General Catalyst and tech entrepreneur Ryan Smith, also owner of the National Basketball Association's Utah Jazz franchise. That deal provided the company with its first institutional capital.
