Varo's Fundraising Efforts Fall Short of $55 Million Target

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2 days ago

Summary

Varo has struggled to raise funds, closing on $29 million instead of its target of $55 million. This is not the first time the company's fundraising efforts have fallen short. Varo's CEO and founder Colin Walsh recently announced his departure, with Gavin Michael replacing him as chief executive.

Key Points

Varo has raised just over $1 billion in funding since its inception in 2015.
The fintech firm is attempting to raise a Series G round after previously raising a $50 million equity round at a lower valuation than its previous $510 million Series E in 2021.
CEO and founder Colin Walsh recently announced his departure, with Gavin Michael replacing him as chief executive.

Why It Matters

Varo's struggle to raise funds highlights the challenges fintech companies face in securing investment. The company's recent leadership change also raises questions about its future direction.

Author

Mary Ann Azevedo

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