Vest Labs raises $13M for trader-friendly prop trading platform

New York-based Vest Labs has raised $13 million in a seed funding round led by Portal Ventures to develop a trader-friendly cross-asset exchange. The company, which operates the Vest Markets platform, aims to differentiate itself from traditional retail prop trading firms by using a model that does not profit from trader losses.

In the typical retail prop trading model, firms often earn revenue from fees charged for simulated trading accounts, creating a conflict of interest where the firm profits when traders fail. Vest’s model allows qualifying traders to use company capital to trade perpetual futures in live markets across crypto, commodities, and equity indices. Traders can retain between 80% and 95% of their profits, while the firm takes a cut of the gains.

Vest reported significant growth, noting that daily revenue increased from $25,000 to over $1 million in September. As of late September, the platform had approximately 27,000 traders, with 26% having received payouts—a rate the company claims is nearly four times the industry average. The funding round included participation from executives at Citadel Securities, BlackRock, and KKR in their personal capacities.