SAN RAMON, CA, April 4, 2006 – AccountNow, Inc., a leading marketer of MasterCard®-branded and FDIC-insured stored value cards for the estimated 40 million strong underbanked consumer market, today announced the closing of $12 million in their second round venture financing.
New investor INVESCO Private Capital led the round, which also included previous investors Oak Hill Venture Partners, VSP Capital, Grayhawk Venture Partners, and the CEO, Tim Coltrell. Proceeds of the funding will be used to support continued growth and expansion of the firm's customer base.
INVESCO Private Capital is one of the oldest and most active private equity investors with $2.3 billion in discretionary assets under management as of December 31, 2005. As a value-added venture capitalist with in-depth experience in the financing and management of new businesses, INVESCO Private Capital will play an important role in the expansion of the AccountNow business.
AccountNow also announced that Shailesh Mehta, former chairman and CEO of Providian Financial Corporation, formerly one of the largest bank card issuers in the United States and recently acquired by Washington Mutual, and Esfandiar Lohrasbpour, General Partner at INVESCO Private Capital will join the firm's Board of Directors.
"Attracting this growth capital is certainly rewarding and serves to validate AccountNow's business model – to provide unparalleled customer service and value to the millions of consumers who do not have a traditional banking relationship. In addition, having Shailesh Mehta join our board is exciting. His experience in building successful companies will no doubt benefit our team," said Tim Coltrell, CEO of AccountNow.
"I have had the opportunity to work with Tim while at Providian and believe that AccountNow's superior product offering, technology platform and management team position the company to be a leader in the emerging stored value card industry," said Mehta. "Being on the Board provides an exciting opportunity to contribute to the company's future growth."
As many as 40 million Americans do not use banks or otherwise have a traditional banking relationship. For these individuals, the alternative to banks is typically high-fee check cashing services to cash checks and money order services to pay bills.
"AccountNow's Vantage Debit MasterCard Card product is a superior, lower cost option for this market," added Mehta "Unlike other stored value card providers, AccountNow has developed a truly differentiated product offering that replaces the checking account – complete with direct deposit, bill paying services, branded debit cards, and credit builder."