EL DORADO HILLS, Calif., July 15, 2008 — Laru Corporation, a provider of Automated Clearing House (ACH) risk and compliance management software applications for financial institutions, today announced Velocity Venture Capital has increased their investment in the company as part of their Series A round of financing.
Velocity Venture Capital, a Sacramento-area based venture capital fund that invests in early stage technology companies, led the initial A round in May of this year. The additional investment was secured as a result of Laru’s meeting a number of second quarter financial targets, including revenue, cash flow and new customer goals.
Laru’s proprietary solutions offer a fully automated, Web-based platform upon which banks, credit unions and other major financial institutions can rapidly identify, resolve and prevent costly ACH fraud and network violations. The company’s products are used by both ACH originating and receiving operations within financial institutions.
“Our Series A round has allowed us to accelerate a number of product development and sales initiatives,” said William Vaughan, president and chief executive officer of Laru. “The continued growth in ACH transactions is creating strong market interest and demand for our solutions.”
Laru’s ACH Clarity and ACH FileFox products complement an institution’s core ACH processing system and provide expanded management and control of ACH risk, fraud and network compliance. Domestic ACH origination volumes have been doubling every five years, resulting in increased growth of ACH fraud and network violations and the need for Laru’s automated solutions. ACH transaction volume is forecast to grow to 24.5 billion transactions by 2009, from 14.6 billion transactions in 2006, according to a recent report by the Federal Reserve and The Tower Group.
- Posted: July 15, 2008