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.”
Castek 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.
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.