Vesta Company News

WSJ Interview with Vesta, CEO and Goldfinch partners

Written by Vesta Team | Jun 2, 2020 3:42:00 PM

 

Interview with WSJ and Vesta, CEO and Goldfinch partners discussing how sales and deals for cybersecurity and e-commerce companies have been affected during COVID-19

Venture capital is still flowing, but deals take longer and sometimes result in less investment.

 Others say that even deals in progress before the lockdown for established companies have become harder to close. Sean Collins, a managing partner at private-equity firm Goldfinch Partners LLC, had met with Ron Hynes, the chief executive of payments and fraud-detection company Vesta Corp., in Portland, Ore., at the beginning of the year to discuss a significant investment in the company.

The two had begun to nail down the finer points of the deal by February, but the process slowed to a shuffle when social-distancing and travel curbs went into effect shortly after, they said. What should have been a simple negotiation instead became a protracted exercise in lobbing versions of contracts back and forth digitally.

“In normal circumstances, we’d have gotten both sides in a room with lawyers and we’d have banged out any inconsistencies or changes in a couple of days,” Mr. Collins said. “A couple of days became weeks as we went almost exclusively to redline versions, as opposed to sitting in a room and slugging it out.”

The deal, a $125 million investment by Goldfinch for an 80% stake in Vesta, closed on May 18. The size of the investment remained the same from earlier discussions, Messrs. Collins and Hynes said.

 Read the full interview here.