Online authentication and identity management solutions provider, Arcot Systems, has closed $11 million in Series A Prime round of financing. Adobe Ventures and Invesco Private Capital led the investment, while previous investors took back-seat participation.
The new round of funding is expected to accelerate Arcot’s software solutions worldwide by focusing on key markets like the financial services, bio-pharmaceutical, consumer portal and other security-conscious enterprises. “While we are generating positive cash flow from operations, this round of financing will enable us to accelerate our growth in sales, marketing, implementation support and distribution expansion,” says Ram Varadarajan, Founder, CEO and Chairman
Established in 1997, Arcot developed its technology in 1999. “But now market demand has caught up with Arcot’s vision and we are already positioned to roll out our product on a mass basis worldwide,” says Varadarajan.
A recent 2005 ID Fraud Survey conducted by Javelin and the Better Business Bureau in the U.S. revealed that over 4 percent of a random sampling of consumers were victims of fraud. According to Javelin Strategy & Research group, over 9.0 million consumers in the U.S. alone became victims of identification fraud. So the demand for authentication solutions such as Arcot’s is significant in helping to protect consumers’ identities.
Arcot balances the demand for strong user authentication with the need for convenient implementation and effortless usability. Arcot provides software solutions based on six unique products, which services payment authentication, user authentication, and digital signature verification platforms for its customers. With over 9,500 credit/debit issuers and 15,000 merchants worldwide, card processors and payment service providers utilize Arcot’s software. Some of its marquee customers include Certegy, PEMCO, Metavante, SunTrust Bank, Barclays Merchant Services, MasterCard International, JCB, Wells Fargo Bank, Pfizer and Bristol Myers-Squibb.
Headquartered in Sunnyvale, CA, Arcot has offices in the United Kingdom, Germany, and India.