Friday, March 21, 2003
Covarity secures $2 million in equity financing from Tech Capital Partners
Investment supports commercialization of loan monitoring, review and management solution
KITCHENER-WATERLOO, ON, March 21, 2003 – Covarity Inc., a developer of credit risk management software solutions for the financial services industry, today announced that it has completed a $2 million round of equity financing with Tech Capital Partners Inc. The investment will enable Covarity to commercialize its flagship solution, ClearCreditTM, which was launched in December 2002.
Managing credit risk for small and medium sized enterprises (SMEs) is a universal challenge shared by banks, credit unions, and organizations engaged in asset-based lending. Covarity has developed a work-flow driven solution that reduces loan administration, increasing the capacity of lenders to service more accounts effectively, while reducing credit risk and increasing the profitability of small business lending.
“Covarity has developed a unique and compelling product offering by collaborating with financial institutions, regulators, and SME borrowers across North America,” said Ron Shuttleworth, President and Chief Executive Officer, Covarity. “The Covarity ClearCredit solution solves a pressing need in this important sector and yields an immediate and quantifiable return on investment for the financial institutions that we have been working with. As a result, customer traction has been excellent.”
“Covarity has all of the elements that we look for when making an investment decision,” said Andrew Abouchar, Partner, Tech Capital Partners. “The company has a seasoned and committed management team, a validated technology, a rational business model, and endorsement from key market influencers.”
About Covarity Inc.
About Tech Capital Partners Inc.
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