Third Round Amount Represents Large Investment in a Company Serving the Underbanked and Will Facilitate Continued Growth
SAN RAMON, CA, June 28, 2007
– AccountNow, Inc., a leading marketer of MasterCard® and Visa® branded prepaid cards for the estimated 40 million strong underbanked consumer market, today announced the closing of $12.75 million in a third round of venture funding and the addition of two new board members.
"The new, significant investment by Trident Capital strengthens our position in the marketplace by enabling us to more rapidly introduce new, exciting services and gain additional share of the unbanked consumer market. This is clearly a highly-attractive market segment, and one where we are already recognized as the leader," said Tim Coltrell, CEO of AccountNow.
Trident Capital led the round and all current investors and board investors participated. Investors include INVESCO Private Capital, Oak Hill Investment, VSP Capital, Grayhawk Venture Partners, Granite Hill Capital Ventures and CEO Tim Coltrell. AccountNow will use these funds to significantly expand its service offerings and reinforce its position as the most trusted brand for the unbanked and underbanked.
AccountNow will also add to its highly-experienced board of directors. Stephen B. Galasso, Strategic Advisor, and Christopher P. (Woody) Marshall, Managing Director, both from Trident Capital have joined AccountNow’s board, while all other board members will continue to serve.
Prior to joining Trident Capital as an Entrepreneur In Residence, Mr. Galasso served as chairman and CEO of NetSpend, a U.S. prepaid card solutions company. Prior to that venture, Mr. Galasso was the President and CEO of Bank of America's credit card company. He grew that company to be one of Visa's largest issuers worldwide. Prior to Bank of America, Mr. Galasso was Vice President and Marketing Director of Communications, Strategic Planning and New Products for Citibank, Visa and MasterCard card products.
"AccountNow’s solution represents a highly-differentiated product offering that effectively replaces the traditional checking account and includes all essential services such as direct deposit, bill paying services, branded prepaid cards and credit builder," Mr. Galasso said. "I look forward to working with AccountNow to help ensure its continued success."
"Our new directors give us an unparalleled depth of market knowledge as we enter a new phase of growth," added Mr. Coltrell. "Messrs. Galasso and Marshall join such industry veterans as Shailesh Mehta, currently president of Granite Hill Capital Ventures, former Chairman and CEO of Providian Financial; former general partner of INVESCO Private Capital, and Sequoia India Capital. Esfandiar Lohrasbpour, heads INVESCO’s Private Capital Office in Palo Alto previously Corporate Development Director at AT&T and Jamie Hale, Partner of Oak Hill Investment Management."
Mr. Marshall joined Trident Capital in 1996 and currently is a director at several successful companies, including Merchant eSolutions and Advanced Payment Solutions, the leading prepaid card issuer in the U.K.
"Unbanked and underbanked consumers in the U.S. represent all geographic and socio-economic areas of our economy, and the number of these consumers continues to grow," noted Mr. Marshall. "AccountNow provides an increasing range of high-quality, low-cost services to give these consumers the banking solutions they need. I am eager to lend my expertise and skills to assist the current management team in expanding the company."
Trident Capital is a leading venture capital and private equity firm with over $1.6 billion of capital under management. The firm has invested in over 120 companies since its founding, and its active investment strategy has helped many companies, such as MapQuest and iRobot, to achieve long-term, sustainable growth. Trident Capital focuses on investments in the software, services and internet markets, and has a long history investing in the payments and transaction processing sector.
About AccountNow, Inc.
AccountNow, headquartered in San Ramon, California, is a leading provider of financial solutions for the 40 million US consumers who do not have established credit or traditional banking relationships. AccountNow’s money saving offers give consumers an alternative to traditional checking accounts by providing access to financial products and payment systems, including MasterCard and Visa prepaid cards, Pay Anyone Bill Payment, and FDIC-insured deposits. AccountNow’s prepaid MasterCard cards are issued by MetaBank: (NASDAQ NM: CASH) and AccountNow’s Prepaid Visa Cards are issued by Palm Desert National Bank. Visit AccountNow online at www.accountnow.com
or www.accountnowvisa.com. For investor relations, 925.498.1827
About Meta Payment Systems
Meta Payment Systems, a division of MetaBank, offers card issuing and program support to banks, processors, and third-party distributors seeking to develop, market and manage stored-value cards. Meta Financial Group, Inc. (: NASDAQ NM : CASH ) is the holding company for MetaBank. For more information, call 605.782.1712, or visit http://www.metacash.com
About Palm Desert National Bank
Palm Desert National Bank is a wholly owned subsidiary of Palm Desert Investments. An active corporate citizen in its community, PDNB has been serving the Coachella Valley for over 25 years, with branch offices in La Quinta, Palm Desert, and Rancho Mirage. PDNB is a nationally chartered financial institution with assets exceeding $400 million, and is home to Electronic Banking Solutions, an acknowledged industry leader that provides a variety of electronic banking solutions including vault cash, and cash management to off premise ATMs and self service kiosks, merchant point of sale sponsorship, and stored value prepaid card programs throughout the nation. For more information, log on to http://www.pdnb.com