Covarity Secures $2.5 Million in Venture Capital Financing Funds Expected to Strengthen the Company's Lead in Loan Management Software Solutions for the Financial Services Sector
Covarity Inc., a leading developer of financial services software, today announced that it has secured an additional $2.5 million in venture capital financing from BDC Venture Capital, GrowthWorks Canadian Fund and VentureLink Financial Services Innovation Fund Inc. The proceeds from the financing will be used to expand Covarity's lead in the commercial loan monitoring solutions market.
"Our solution allows financial institutions to collect and analyze borrower financial statement data electronically instead of on paper," said Rod Foster, Chief Executive Officer of Covarity. "The proven value of our solution has enabled us to move successfully into new market segments. The funding will assist us in building on this momentum while ensuring we continue to meet our commitments to our current customer base."
"Covarity has had a tremendous amount of success in the Canadian Financial Services sector" said John Kemp-Welch, Director, BDC Venture Capital. "The company has proven its ability to meet the needs of the leading lenders and is extremely well positioned for significant growth this year."
About BDC Venture Capital
BDC Venture Capital (www.bdc.ca) is a major venture capital investor in Canada, active at every stage of the company's development cycle, from seed through expansion. Its focus is on technology-based businesses that have high growth potential and that are positioned to become dominant players in their markets. Established in 1975, BDC Venture Capital has invested in over 400 different companies to date. It currently manages more than $750 million in venture capital investments in the areas of Life Sciences, Telecommunications, Information Technology, Advanced Technologies and Funds Investments.
GrowthWorks (www.growthworks.ca) is a recognized leader in venture capital fund management with proven experience in the raising, investing and managing of capital. GrowthWorksTM managed funds, including the Working Opportunity Fund, GrowthWorks Canadian Fund, GrowthWorks Commercialization Fund, and GrowthWorks Atlantic Venture Fund, have approximately $800 million in combined assets. GrowthWorks has a team of skilled and knowledgeable investment professionals with a combined 200 years of experience. The Investment team has a proven track record of identifying, analyzing and structuring investments in emerging sectors. GrowthWorks is a registered trademark of GrowthWorks Capital Ltd.
The VentureLink Group of Funds represents a unique opportunity for Canadian investors to combine the tax-advantaged benefits of a labour-sponsored investment fund with the diversity of an entire family of funds. VentureLink focuses on capital preservation and long-term growth potential by making equity and debt-related investments in established small and medium-size companies in Ontario. VentureLink funds give investors access to well-diversified portfolios of established companies operating in traditional industries such as financial, manufacturing and service industries as well as dynamic industries like biotechnology and alternative energy. Additional information regarding the VentureLink Group, which had over $230 million in assets as of January 31, 2007 can be found at www.venturelinkfunds.com.
About Covarity Inc.
Covarity is rapidly establishing itself as the benchmark provider of commercial loan monitoring software. Covarity offers a hosted, web-based commercial loan management solution that delivers process efficiencies and enables banks to mitigate credit and operational risk and prepare for regulatory scrutiny fast and efficiently with minimal capital outlay. Covarity is based in Kitchener, ON and was incorporated in 2001. The Covarity solution is part of a long term profitability and competitiveness strategy for customers such as Royal Bank of Canada, HSBC Bank Canada, Libro Financial Group, and RBC Bank in the United States. Please see www.covarity.com for additional information.
All company and/or product names are trademarks and/or registered trademarks of their respective owners.
For media inquiries, please contact:
Direct: 519-749-9424 x326
Direct: 519-749-9424 x227