AccountNow Secures Funding from the New CFSI Catalyst Fund
AccountNow, a marketer of network branded prepaid cards for the estimated 40 million underbanked consumers in the US market, has announced that the Center for Financial Services Innovation’s new Catalyst Fund is the final investor in the companies third round of venture funding announced in June.
The Center for Financial Services Innovation (CFSI) created the CFSI Catalyst Fund to invest in financial services companies and solutions focused exclusively on underbanked consumers. The fund is a private equity limited partnership and was announced on July 24.
“The CFSI Catalyst Fund seeks dynamic, well-managed, early growth stage companies which will deliver both effective products and services for underbanked consumers and a robust return on the Center’s investment,” commented Arjan Schutte, CFSI’s Associate Director, who manages the fund.
“AccountNow is an excellent example of how companies can serve this market profitably for both company and consumer, and we are pleased it is our first completed investment in the new fund. CFSI believes prepaid products have enormous potential for the underbanked market. As with other banking services and strategies, we support innovative companies not only through investment, but with our roundtables, networking opportunities, events, research and other programs."
“Investment by the CFSI Catalyst Fund and creation of the fund itself are just the latest proofpoints that AccountNow is tapping into a highly attractive and underserved market,” said Tim Coltrell, CEO of AccountNow. “CFSI’s funding will assist us as we introduce new services to the market.”
On June 26, AccountNow announced $12.75 million in new funding and the addition of two new board members. Trident Capital, a new investor, led the round, and all current investors participated. These investors include INVESCO Private Capital, Oak Hill Venture Partners, VSP Capital, Grayhawk Venture Partners and Mr. Coltrell. Christopher P. (Woody) Marshall, Managing Director of Trident Capital and Stephen B. Galasso, Strategic Advisor at Trident Capital, were AccountNow’s new board members.
AccountNow also named David J. Petrini, formerly Executive Vice President and Chief Financial Officer of GreenPoint Mortgage Funding, Inc., owned by Capital One as its new Chief Financial Officer. Prior to joining GreenPoint, Mr. Petrini served 16 years with Providian Financial Group, ultimately serving as Vice Chairman, managing corporate finance, financial planning and analysis, treasury, accounting, investor relations, as well as facilities and real estate. He began his career at Ernst & Whinney, now Ernst & Young.
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