San Francisco compliance service provider Strevus bags $6.5M in first institutional funding
Software development firm Strevus has secured $6.5 million in its first funding round for its risk and compliance solutions. The financing was led by Blumberg Capital and US Venture Partners, according to TechCrunch.
Strevus works as a tool that ensures the compliance of financial service providers with the new regulations that the federal government will start implementing this year. The company plans to address first the Foreign Account Tax Compliance Act (FATCA), which goes after US tax evaders and other foreign financial firms that are majority owned by US taxpayers, the report detailed.
Ken Hoang, the chief executive of Strevus, said: "The world has changed quite a bit with the financial service meltdown, and regulatory compliance is the resulting fact in today's world."
Currently, a few companies work with the company's managed platform that VentureBeat descibes to work "which operates as a networking tool and an industry Rolodex - as well as a compliance offering." In the Hoang's own words, "It's similar to Box with a LinkedIn functionality." He continues, "We're enabling customers to reach out to others and bring their data in."
Hoang said the San Francisco-based firm will sell its service to two groups. The first, the buy-side, includes financial services firms that hold between $250 million and $1 billion worth of assets. The second, the sell-side, includes the client base of the country's leading banks, said the report.
According to Hoang, the Strevus service will cost $100,000 to $200,000 for the sell-side client, TechCrunch reported.