EL DORADO HILLS, Calif., May 6, 2008 — Laru Corporation, a provider of Automated Clearing House (ACH) risk and compliance management software applications for financial institutions, today announced it has completed a Series A round of venture funding, which was led by Velocity Venture Capital.
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 represent a major milestone in high-volume ACH transaction processing analytics for originating and recipient financial institutions.
“We are very pleased at the response received from the venture community,” said Ben Waidhofer, president and chief executive officer of Laru. “This funding will accelerate the adoption of Laru’s ACH Clarity and ACH FileFox products as the standard for managing risk, fraud, and compliance across the ACH network.”
The round was led by Velocity Venture Capital, a Sacramento-area based venture capital fund that invests in early stage technology companies, with a focus on California’s capital region.
“When investing, we look for companies that meet a real need in the marketplace and have a talented team that can deliver unique products in multi-billion dollar markets,” said Jack Crawford Jr., general partner of Velocity Venture Capital. “Laru has the potential to transform the way financial institutions reduce the risks associated with ACH fraud and network compliance.”
Prior to closing the Series around, Laru had received investments from several investors concentrated in the greater Sacramento region.
Domestic ACH origination volumes have been doubling every five years, resulting in rapid growth of ACH fraud and network violations and the need for Laru’s automated solutions. The scale of the problem is expected to continue multiplying at the current double-digit growth rates, as nearly 2,000 financial institutions originate and another 15,000 recipient institutions participate in more than 15 billion transactions annually with an aggregate value of more than $30 trillion.
- Posted: May 06, 2008