xTech Secures $8 Million in Series A Funding
xTech Secures $8 Million in Series A Funding
May 8, 2006 – Minneapolis, MN — xTech, an information services company that enables online commerce and direct marketing companies to secure more profitable customers while preventing fraud and identify theft, today announced that it has completed an $8 million round of Series A financing from Split Rock Partners. Michael Gorman and Jim Simons, managing directors of Split Rock Partners, have joined the xTech board of directors.
“This financing will give us the ability to meet the demand for next-generation decision support solutions that help companies sell more and sell safely,” said Gordy Meyer, CEO of xTech. “In addition to the investment capital, Split Rock Partners also brings us industry relationships and counsel that will help us achieve our business goals.”
This capital will be used to further accelerate xTech’s growth by hiring additional sales and support personnel, investing in R&D, and increasing market awareness for the company’s products and services.
xTech delivers decision support solutions that help e-commerce and direct marketing firms develop profitable customer relationships while preventing fraud and identity theft. xTech has developed proprietary data mining software which sifts through more than 30 billion records to deliver unique customer intelligence at sub-second speeds. xTech clients also benefit from an industry first: automated electronic scoring (eScore) technology which enables the development of customized statistical scores in a matter of hours, compared to the months necessary to deliver similar scores by legacy service providers. With eScore technology, companies have the ability to develop, test, and modify statistical scores.
“Gordy Meyer and the xTech team are delivering innovative solutions to the challenges facing online commerce and direct marketing companies,” said Michael Gorman, managing director of Split Rock Partners. “xTech’s customers need to make data-driven decisions regarding customer acquisition, credit and fraud prevention that enable them to quickly react to changing market dynamics while carefully managing the risk of fraud and identify theft. xTech has responded to that challenge by developing systems which quickly and reliably transform extraordinary volumes of raw data into meaningful customer insight.”
“xTech has a compelling value proposition for its customers, a robust technical platform, and a proven team committed to delivering results,” said Jim Simons, a managing director of Split Rock Partners. “We look forward to working with Gordy and his team as they take xTech to the next stage in its development as a category leader.”
About xTech, Inc. xTech, Inc. is an information services company that enables online commerce and direct marketing companies to secure more profitable customers while preventing fraud and identity theft. xTech was founded by the industry veterans who built RiskWise, an information services company targeting risk management and fraud prevention that was sold to LexisNexis in 2000. xTech was founded in January of 2004. Companies leverage xTech’s extensive data set and proprietary analytical assets to attract, acquire and retain profitable customer relationships. With its predictive data, the ability to transform raw data into meaningful customer insight, and the systems to deliver answers in real-time, xTech is helping customers improve marketing, payment, credit, and fraud decisions. Additional information about xTech can be found at www.xtechllc.com.
About Split Rock Partners Split Rock Partners, with offices in Minneapolis and Menlo Park, seeks emerging opportunities in software, internet services and healthcare primarily in the Upper Midwest and West Coast. Split Rock Partners was formed in June 2004 by the software and healthcare investment teams of St. Paul Venture Capital and continues to manage St. Paul Venture Capital’s existing software and healthcare portfolio. Representative internet services companies in the Split Rock Portfolio include Compete, LowerMyBills (sold to Experian in 2005), SPS Commerce, and Quin Street. In May of 2005, the firm announced the closing of Split Rock Partners L.P, a $275 million venture fund. Additional information about Split Rock Partners can be found at www.splitrock.com.
For Immediate Release:
Mark Doman, xTech
Michael Gorman, Split Rock Partners