Fund­ing al­lows Fisoc to ex­pand

Austin-based soft­ware com­pany has raised $5 mil­lion to move into other U.S. mar­kets.

Austin American-Statesman - - BUSINESS - By Lori Hawkins lhawkins@states­ Con­tact Lori Hawkins at 9125955.

Austin-based Fisoc, which sells soft­ware used by credit unions and com­mu­nity banks, has raised $5 mil­lion in ven­ture cap­i­tal to ex­pand into new U.S. mar­kets.

The com­pany de­vel­ops so­cial me­dia tools that let fi­nan­cial in­sti­tu­tions of­fer re­wards pro­grams and other ser­vices to their cus­tomers.

In­vestors in the fund­ing round were Gr­ey­croft Part­ners, KEC Hold­ings LLC, Meta­mor­phic Ven­tures, Day­light Part­ners and in­di­vid­u­als. Fisoc raised $4.3 mil­lion ear­lier this year, ac­cord­ing to the Price­wa­ter­house­Coop­ers Money tree sur­vey.

Fisoc was formed in 2009 by the found­ing team of Austin-based Funds Xpress, which pro­vided on­line bank­ing soft­ware to banks and credit unions. Funds Xpress had more than 500 cus­tomers, mostly com­mu­nity fi­nan­cial in­sti­tu­tions, when it was ac­quired by First Data Corp. in 2007 for an undis­closed amount.

Jay Valanju, CEO of Fisoc, said the lat­est fund­ing “will en­able us to ser­vice our grow­ing cus­tomer base and ex­e­cute and sup­port con­tracts with fi­nan­cial in­sti­tu­tions rang­ing from the Up­per Mid­west, Deep South and North­east, in ad­di­tion to our first mar­kets in Texas and Arkansas.”

Fisoc, which has 24 cus­tomers, em­ploys 30 peo­ple and plans to add up to a dozen in the coming year, pri­mar­ily in sales and mar­ket­ing, Valanju said.

The com­pany’s plat­form, called Buzz Points, lets bank cus­tomers earn points when they make pur­chases.

In ad­di­tion, Fisoc signs up lo­cal mer­chants who of­fer ad­di­tional points for dol­lars spent.

Points can be re­deemed for gift cards or mer­chan­dise.

Cus­tomers can use the ser­vice through their banks’ web­site or by down­load­ing a free smart­phone app. Fisoc charges banks a small li­cens­ing fee and gen­er­ates rev­enue by tak­ing a cut of cus­tomer trans­ac­tions.

Jef­frey Citron, man­ag­ing part­ner of KEC Hold­ings, said Fisoc’s “unique com­bi­na­tion of bank­ing ex­per­tise and so­cial me­dia soft­ware pro­vide in­stant cred­i­bil­ity with the man­age­ment of the fi­nan­cial in­sti­tu­tions that they are tar­get­ing as new cus­tomers.”

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