Reval, a global leader in financial risk management solutions and services, today announced that it has secured $28 million in expansion capital.
Prominent Boston-based venture capital firms Commonwealth Capital Ventures and North Bridge Venture Partners co-led the round.
A portion of the proceeds was used to purchase shares from existing investors. The expansion round will be used to accelerate research and development, grow the company's sales and marketing capabilities, and expand in the U.S. and internationally.
In conjunction with the funding, Commonwealth Capital Ventures General Partner Justin Perreault and North Bridge Venture Partners General Partner Rich D'Amore will join Reval Chief Executive Officer and Co-founder Jiro Okochi on the company's Board of Directors.
"After an extensive process of meeting with over 50 venture firms, we selected Commonwealth and North Bridge due to the collective experience they bring to the table with SaaS portfolio companies as well as their hands-on operating experience building successful software companies," said Reval's Okochi. "Although the financial terms were attractive, even more important was their cultural and personality fit with our organization. We are pleased to have the opportunity to collaborate with Justin, Rich and their respective firms to expand upon our global leadership position."
Founded in 1999 to provide innovative and affordable solutions to increasingly complex financial management requirements, Reval has enjoyed rapid sales and customer growth for several years.
"Reval offers an opportunity to back an outstanding management team which has demonstrated its ability to build a category and technology leader with rapid sales growth and profitability," said Commonwealth Capital Ventures' Perreault. "The company is seeing tremendous interest in its solutions, which quickly and cost-effectively address the urgent requirement for corporations to manage their hedging activities and meet both business and compliance needs. With this investment, Reval will have the funding needed to take full advantage of its sizable market opportunities in the U.S. and internationally."
Reval's flagship derivative solution, HedgeRx, and derivative valuation service, Reval Center, address the complex business, valuation, and accounting requirements for derivative management for interest rates, foreign exchange and commodities. Reval's products and services help companies implement better approaches to effectiveness testing under stringent accounting rules such as FAS 133 and IAS 39, providing better control of operational risk, and helping to avoid financial restatements and other regulatory pitfalls. The easy-to-deploy HedgeRx is a professionally hosted application delivered over the Internet with cutting-edge security, strict controls and a SAS 70 Type II certification. Organizations including Commerzbank, Deloitte & Touche LLP, General Motors, GlaxoSmithKline, the government of Canada, National Grid Transco plc, Qantas, and many more have used Reval's solutions to hedge foreign exchange, interest rate, energy and commodity risks while complying with today's FAS 133 and IAS 39 requirements.
"Reval's success reflects the growing appeal of industry-specific, software-as-a service applications to the enterprise," added Rich D'Amore of North Bridge. "Our decision to invest in Reval is based on the long-term value we see in the company's business model and technology, combined with the company's outstanding traction among blue-chip enterprise customers in a rapidly-growing market. We're happy to have the opportunity to help fuel the growth of the company."