First Coverage, a leading provider of financial information management solutions to the institutional investment community, today announced it has secured $9 million in Series B funding from a cross-border syndicate of venture capital investors led by Boston-based Commonwealth Capital Ventures.
Also included in the syndicate are Boston-based GrandBanks Capital and Toronto-based JLA Ventures, both involved in First Coverage's $5 million Series A round of financing in November 2006. This most recent expansion round will be used to further First Coverage's growth via both product development and geographic expansion, among other activities.
In conjunction with this funding, Commonwealth General Partner Jeffrey M. Hurst will become a member of First Coverage's Board of Directors. Mr. Hurst's addition further strengthens the company's expertise and experience, particularly in the relevant fields of Finance and Software as a Service (SaaS).
"Commonwealth is excited to be joining a team with such a wealth of experience and track record of success," said Hurst. "What this team has already managed to accomplish in just over two years of operation is truly remarkable. It convinced us that First Coverage is on the path toward significantly changing the way the financial industry does business."
Founded in 2005, First Coverage provides the global financial markets with software-based tools developed to greatly increase efficiencies and communication within the investment management process. With its first production client going live in early 2007, First Coverage's user base has grown to nearly 300 firms worldwide in just over a year.
"We are thrilled to welcome Commonwealth and Jeff Hurst to First Coverage's Board of Directors." said co-founder and CEO Randy Cass. "Over the last 12 months First Coverage has seen incredible growth in our user base, customer usage and company revenues, and has clearly solidified our place as the market leader in North America. This latest round of capital will allow us to accelerate growth, expand our geographic reach and deliver even more innovative solutions to the ultimate benefit of all industry participants."
Jeff Parker, current Chairman of First Coverage, founder of First Call and StreetEvents and former CEO of Thomson Financial added, "I've been here before with First Call and StreetEvents and once again see a significant change occurring in the way that the buy-side and sell-side look to interact and gather information from each other. The time is absolutely right for an innovative company like First Coverage to become the new market standard and I'm excited about what we're going to be able to accomplish going forward."