Private Equity Firm Virgo Capital provides Seed Capital to Launch

Established by Seasoned Entrepreneur and Executive Sid Yenamandra, Surge Ventures Recruits an A-list of Advisory Board Members Encompassing Wealth and Tech Industry Leaders to Guide Firm’s Strategic Vision

MENLO PARK, CA.  December 15, 2022 – Surge Ventures (Surge), a new SaaS venture studio initially targeting the financial services and wealth management industry, announced its launch today with a significant seed investment from Virgo Capital, a global private equity firm.   Surge will work on building the next generation of game-changing SaaS companies to tackle emerging compliance risks such as advisor data governance, client privacy obligations management, user entitlement management and holistic Personally Identifiable Information (PII) posture assessments.

Sid Yenamandra, Co-founder and Managing Partner of Surge Ventures said, “As the wealth tech and financial services industry adopts more technologies based in Data and AI and is dealing with an increase in recent data-related enforcement actions from regulators, we identified a serious product innovation gap in the market and a lack of new technologies coming from established tech providers to pro-actively address data compliance risks unique to this industry.”

“We created Surge Ventures to not just provide investment capital but actually build-up and grow multiple start-ups with hands-on operational support from Day 1.  Whether it’s helping to design a high-quality product for the wealth management space on an accelerated ‘go-to-market’ timeframe, or recruiting the co-founders and executive team, or making first client introductions, we believe Surge Ventures is filling a major void in the venture investment and wealth landscape today.”

Sid Yenamandra, successful entrepreneur and software executive

Mr. Yenamandra has a history of successful exits as a Silicon Valley based entrepreneur. Most recently, he was CEO and Founder of Entreda, acquired by K1 Investment Management and Smarsh in 2020. He was the visionary behind Entreda’s award-winning cybersecurity compliance software and worked closely with regulators for years before unveiling its platform to specifically address SEC and FINRA guidance. Before being acquired by Smarsh, Entreda was the #1 provider of cybersecurity compliance software by market share to financial services and wealth management firms. Clients included industry leaders such as Advisor Group, LPL Financial and Kestra. Prior to Entreda, Mr. Yenamandra served as VP of Product and Marketing at venture-funded, Plato Networks, which was acquired by Netlogic and then Broadcom for $4B in 2012. He also led an NSA-funded project at HIFN to build data security technologies to protect US-critical infrastructure.

In-partnership with Virgo Capital

Virgo Capital, the well-respected software private equity firm, is the founding investor in Surge Ventures and has provided initial seed capital of $10 million. Beyond the seed capital, by partnering with Virgo capital, Surge benefits from decades of SaaS investment, growth and scale experience as well as access to capital to do targeted add-on acquisitions. Founded in 2005 in Austin, Texas, Virgo Capital is focused on investments in software and technology-enabled services companies. Virgo Capital has made 11 platform investments to date plus several add-on acquisitions made by its portfolio companies. Virgo’s investments include leading software companies like Korbyt in the workplace experience space and Zello in the voice-first communication space.  Virgo has successfully exited five investments with cumulative exit value of well over $300 million, including the recapitalization of Sayers Technology by Mosaic Capital Partners and the sale of Accruent to TA Associates.

Hemanth Parasuram, co-founder and Managing Partner of Virgo Capital said, “We are excited to provide seed capital for a venture studio platform like Surge Ventures. We have known Sid for years and have followed his career closely. His track record as an entrepreneur and executive is impressive. We recognized that Surge Ventures was developing a new kind of innovation platform and we needed to be a part of it.”

Strong Industry Advisory Board

Surge has established an Advisory Board comprised of seasoned executives and influencers from across the FinTech and wealth management sectors. The Board will serve as strategic counselors to Surge’s leadership, as the firm executes its unique vision and growth plans. The inaugural members of the Board include:

“I am extremely excited to be part of the Surge Ventures team given their unique and efficient model of bringing together investment capital, deep industry knowledge, a strong industry advisory network and a smart operations team to offload start-ups to focus on product and clients. The Financial Services and Wealth Management industry needs innovative, yet usable, data governance and compliance solutions and Surge is positioned to bring multiple innovative companies to market that address various facets of the data compliance conundrum,” said Mr. Lish.

About Surge Ventures

Surge Ventures will co-found and invest in promising start-ups that are using innovative technology to address rapidly intensifying data and privacy needs across wealth management firms and other financial services businesses. Consistent with the venture studio model, Surge Ventures will go beyond providing investment capital and strategic guidance to its portfolio companies.  The firm will leverage its decades of technology expertise, best practices for bringing nascent innovative products to market in the wealth management space, customer acquisition and deep operational knowledge to grow multiple software companies from the ground up to serve as a “shared services” backbone to its portfolio companies, offering scalable operations, foundational technology building blocks, demand generation, corporate finance and enterprise sales support, among other solutions.

The firm has developed a set of proprietary methods, known as the “Surge Method,” to rapidly test business ideas, detect early signs of product-market-fit and track on-going growth to de-risk investments by focusing on only the most promising products and solutions.

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