Very Good Security
Very Good Security (VGS) is a San Francisco-based payments infrastructure company that provides tokenization and data security services.
Profile
VGS replaces sensitive payment and identity data with tokens so companies can process transactions without storing raw data, reducing their compliance burden.
Very Good Security (VGS) is a San Francisco-based payments infrastructure company that provides tokenization and data security services. Founded in 2015 (some sources say 2016) by Mahmoud Abdelkader and Marshall Jones, the company has raised $104 million in disclosed funding from investors including Andreessen Horowitz, Goldman Sachs, Vertex Ventures, and Visa. Its Series A was $8.5 million (2018), Series B was $35 million (2019), and a Series C round brought total funding to $104 million.
VGS's core product is a cloud-based platform that replaces sensitive payment and identity data with tokens, enabling clients to process transactions without storing raw data, thereby reducing PCI compliance scope. The company has expanded beyond basic tokenization to offer card management, network tokens, account updater services, and cross-region disaster recovery. In summer 2025, VGS launched a Singapore vault deployment for APAC customers and introduced multi-region recovery capabilities.
VGS was named to the Inc. 5000 list in 2022, ranking 991. The company's customer logos include Rappi, AWS, Zilch, Bilt, Albertsons, Robinhood, PayOS, Nekuda, Mission Lane, MoonPay, Careem, and Upside. VGS competes in a crowded market against firms like Quantexa, Evervault, and Paymentology.
The company has not disclosed recent revenue figures, but its Inc. 5000 listing required demonstrating revenue growth from 2018 to 2022. No major controversies or leadership exits are publicly documented, though the company operates in a highly regulated space where data breaches or compliance failures could be existential.
Who buys this
- Fintech companies needing PCI-compliant payment processing
- E-commerce platforms handling credit card data
- Financial institutions managing identity verification
- Neobanks and digital wallets requiring tokenization
- Enterprise merchants with large-scale payment operations
Publicly disclosed clients
- Rappi
- AWS
- Zilch
- Bilt
- Albertsons
- Robinhood
- MoonPay
- Careem
- Upside
Strengths and what to watch
Strengths
- Strong investor backing from Goldman Sachs, Andreessen Horowitz, and Visa, providing capital and strategic partnerships.
- Expanding global infrastructure with a new Singapore vault deployment and multi-region disaster recovery, improving latency and reliability for APAC customers.
- Named to Inc. 5000 in 2022, indicating significant revenue growth over a four-year period.
Watch for
- Dependence on a few large clients like Robinhood and Albertsons; concentration risk if any churn.
- Operating in a highly regulated space (PCI DSS, GDPR) where a data breach or compliance failure could severely damage the business.
- Competitive pressure from well-funded rivals like Evervault and Quantexa, which may erode market share or pricing power.
Recent moves
Key Information
- Industry
- Privacy & Security
- Founded
- 2016
- Headquarters
- San Francisco
Frequently Asked Questions
What does Very Good Security do?
Very Good Security is a San Francisco-based payments infrastructure company that replaces sensitive payment and identity data with tokens. This allows businesses to process transactions without storing raw data, significantly reducing their PCI compliance burden and data security risks.
How does VGS tokenization reduce PCI compliance?
VGS replaces sensitive data like credit card numbers with tokens that have no exploitable value. Since clients never store raw payment data, their systems fall outside PCI DSS scope, reducing audit complexity and compliance costs while maintaining transaction functionality.
Who are VGS's main investors and how much funding have they raised?
VGS has raised $104 million in disclosed funding from investors including Andreessen Horowitz, Goldman Sachs, Vertex Ventures, and Visa. Their Series A was $8.5 million in 2018, Series B was $35 million in 2019, followed by a Series C round.
Which companies use Very Good Security?
Notable VGS customers include Rappi, AWS, Zilch, Bilt, Albertsons, Robinhood, MoonPay, Careem, and Upside. These span fintech, e-commerce, neobanks, and enterprise merchants requiring secure payment processing and tokenization services.
What recent updates has VGS announced for its platform?
In summer 2025, VGS launched a Singapore vault deployment for APAC customers and introduced multi-region disaster recovery capabilities. These updates improve latency and reliability for clients in the Asia-Pacific region while expanding global infrastructure.
What are the main risks for Very Good Security as a business?
VGS faces concentration risk from dependence on large clients like Robinhood and Albertsons, operates in highly regulated spaces where data breaches could be existential, and competes against well-funded rivals like Evervault and Quantexa that may erode market share.
Sources
- www.verygoodsecurity.com — Company description, customer logos, product positioning
- www.verygoodsecurity.com — Summer 2025 product updates including Singapore vault deployment and multi-region recovery
- www.verygoodsecurity.com — Inc. 5000 ranking in 2022 and revenue growth claim
- techcrunch.com — Series B funding of $35 million led by Goldman Sachs
- tracxn.com — Total funding of $104 million, founding year, founders, and competitor list