Funding allows Fisoc to expand
Austin-based software company has raised $5 million to move into other U.S. markets.
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.”