For Immediate Release
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Castek secures $22.8 million
(US) series C financing
Technology Firm Deepens Commitment to Property/Casualty
Market
Toronto, July 22, 2002 — Castek Inc. today announced
a third round of external equity funding valued at $22.8
million (US), the largest private placement in the company’s
12-year history and a significant endorsement of its approach
to the development of products and services for the property
and casualty insurance market.
“We’re very pleased to welcome a marquee investor of
TCV’s stature to Castek,” said Yung Wu, Castek’s CEO.
“This level of capitalization underscores our commitment
to the property/casualty market and to our customers.
It allows us to advance the leadership position of our
flagship product Insure3 Policy [pronounced
insure-cubed], it shortens our timeframe for the next
release of Insure3 Claims, and the addition
of new products, such as insurance billing, to the Insure3
product suite. Most importantly, it rewards our customers
who are working with us to help bring advanced systems
to market quickly.”
Technology Crossover Ventures (TCV), of Palo Alto,
California, is the lead investor in this round and Henry
Feinberg, a venture partner at TCV, will assume a seat
on the Castek board of directors. This financing round
also includes Netherlands-based p3 Technology Partners
and Covington Capital’s TRIAX Fund. Castek will issue
14.8 million Class C Preferred Shares as part of the
agreement.
In June, 2001, Castek announced $10 million Series
B equity funding, led by p3, with the participation
of CIBC World Markets and Altamira Management Ltd.
Over the past 12 months, Castek has grown its
enterprise value by 75%, following its previous financing
round in 2001. Since 1999, the company has maintained
a greater than 50 percent annual growth rate. This
round of financing marks the second time that new external
investors have recognized Castek’s vision and track
record against a backdrop of challenging times in the
capital markets.
“Castek has effectively articulated its corporate vision,
established its strategic plan, executed on its commitments,
and earned the trust of its customers,” said Rick Kimball,
founding general partner of TCV. “As a result, the
company has attained rapid market influence and penetration
— and provided its customers better ways to create and
modify insurance products, apply investments toward
business goals and scale their core processing systems.
This is more than a financial commitment, it is also
a strong endorsement of Castek’s outstanding team.”
About TCV
TCV is a leading provider of growth capital to technology
companies, providing funds to expansion, late-stage
private, and public companies — and managing a technology
focused public equity vehicle. Founded in 1995, with
more than $2.5 billion under management, the firm has
twelve partners and is headquartered in Palo Alto, California.
About Castek
Castek Software Factory Inc. specializes in the
creation of strategic business software for P&C
insurance. Founded in 1990, Castek is recognized for
its advanced, flexible, core-business processing systems.
For more information, please visit www.castek.com.
Contact
Kelly Shanefelter
Martino & Binzer
(860) 678-4300, Ext. 222
kshanefelter@goodbait.com