Vest raises $13M to build a prop trading firm that profits when its traders do

Most retail prop trading firms have a quiet secret: they can do just fine when their customers lose. Vest Labs wants to build one that only wins when its traders do. The New York-based startup announced Wednesday that it has raised a $13 million seed round. The round closed in July and was led by Portal Ventures. The pitch is simple. Qualifying traders get company money to trade perpetual futures in live markets, around the clock, and Vest takes a cut of the gains. No simulated accounts, no profiting from failure. How the Vest model works Many retail prop trading firms charge fees for simulated trading accounts. Traders pay for the chance to prove themselves, and the firm earns money whether those traders succeed or blow up. Revenue comes from the fees, not from market returns. Vest says it flips the arrangement. Through its platform, Vest Markets, qualifying traders deploy company capital on perpetual futures tied to equity indices, crypto, and commodities. Perpetual futures are derivatives that let traders bet on an asset’s price without owning it. Unlike traditional futures, they have no expiry date, so positions can stay open as long as the trader keeps them funded. Traders usi...