CapitalStream Secures $21 Million For Strategic Acquisitions
New Funding Fuels Company’s Leadership Role in Offering Enterprise Software to Financial Institutions
SEATTLE, WA – CapitalStreamTM, a pioneer in front office automation solutions for commercial finance operations, today announced it has raised over $21 million in investor funding, designated for strategic industry acquisitions. Backed by investor firms FTVentures, Bank of America, Polaris Venture Partners, Mobius Venture Capital, Voyager Capital, and The Benaroya Company, CapitalStream will acquire technology and software providers that expand CapitalStream’s product offering to its target market – the small business, equipment and commercial finance operations of financial institutions and other finance providers.
“Financial institutions are trying to integrate numerous stand-alone point solutions in order to streamline operations, grow revenue and meet customer demands for integrated products and services,” said Kevin Riegelsberger, CapitalStream’s president and CEO. “CapitalStream’s FinanceCenterTM product line is already designed to link with these various systems to provide a complete Front Office platform. By acquiring these point solutions we minimize the risk and maximize the value to our clients by more closely integrating these products and offering a single source for support.”
CapitalStream’s acquisition strategy is designed to provide a broader range of products and services, expanding the company’s established front office automation product line to include complimentary products such as back office, accounting and servicing solutions along with other point solutions used in commercial finance.
“CapitalStream’s experienced management team has demonstrated an ability to acquire and integrate software operations, close significant projects and grow revenue – even in today’s tough economic environment,” said Tony Audino, Chairman of the Board at CapitalStream and Managing Director of Voyager Capital.
“That track record, combined with the excellent business opportunities available in the market today, allows us to leverage our investment in CapitalStream even further by increasing the scope of their products and services through acquisition.”
The funds will be used specifically for acquisition of businesses and products and are contingent upon CapitalStream identifying and closing prospective acquisitions that meet the investment criteria.
Established in 1995, CapitalStream develops financial front office automation solutions that enable banks and finance companies to transform paper-based, stand-alone operations into integrated, streamlined finance supply chains. CapitalStream solutions streamline application processing, deal structuring, credit analysis and document generation to rapidly originate leases, loans, lines and cards. As an established industry leader, CapitalStream has helped many small business lending, equipment finance and commercial lending operations to improve relationships with customers and partners, streamline operations, reduce risk and achieve significant revenue growth.
Founded in 1998, FTVentures (www.ftventures.com) was the first venture capital firm in the U.S. to focus on technologies that benefit the global financial services industry. FTVentures now has over $623 million in total capital under management and is a leading investor in information technologies. FTVentures invests primarily in private companies developing products and services in software and payment & business services, with a particular emphasis on companies that enable financial institutions worldwide to expand and to operate more efficiently.
FTVentures’ investors are 38 of the world’s leading financial institutions and include AIG, Bank of America, BNP Paribas, Charles Schwab, Citigroup, Credit Suisse Group, Deutsche Bank, DBS Bank, GE Capital, HSBC Holdings, Key Principal Partners, National City, Skandinaviska Enskilda Banken (SEB), Standard Chartered Bank, US Bancorp and Wells Fargo.
FTVentures-backed companies include 7-24 Solutions, Financial Engines, Corillian, Managed Objects, Banter, Vernier Networks, Verus Financial Management, Caplin Systems, Xign, CapitalStream, e-Security, E-LOAN, Synchrologic, ValuBond, ValiCert, and ClearCommerce.
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