Safeguard Scientifics Adds Crimson Informatics and Hoopla Software as New Technology Partner Companies
Big Data, SaaS, Cloud Computing and Gamification Continue to Drive Capital Deployment Opportunities in Large, Rapidly Growing Markets
WAYNE, Pa.--(BUSINESS WIRE)-- Safeguard Scientifics, Inc. (NYSE: SFE), a holding company that builds value in growth-stage life sciences and technology companies, today announced that it has led a Series A-1 and a Series A financing, respectively, for Crimson Informatics, Inc. and Hoopla Software, Inc. Crimson combines mobility, cloud computing, big data technologies and the Internet of Things into a single, revolutionary offering in the usage-based auto insurance (UBI) market. Hoopla offers a complete sales performance optimization platform, which leverages data, game mechanics and communication tools to cultivate a high performance culture and drive results for sales employees.
As weve stated previously, Safeguard typically deploys $5 million to $25 million per partner company, in multiple domains and at multiple stages, with some selective early-stage deployments, said Peter J. Boni , President and CEO of Safeguard. Crimson and Hoopla are initial revenue stage companies that have rapidly established credibility with their technology and traction with large-scale customers. Both companies have reached inflection points in their businesses where they can really take advantage of the financial and operational support that are hallmarks in Safeguards platform. We are excited by the opportunity to partner with these innovative, next-generation companies that have first-mover advantage in their respective industries.
Crimson Informatics (www.crimsoninformatics.com)
UBI underwrites a driver based on how much and how well s/he drives versus statistically unreliable and unfair criteria like gender, marital status, credit rating, occupation, etc. UBI is a large growing market, and is being mandated by both the insurance industry and regulators internationally. Most insurance industry reports predict that UBI will ultimately replace Credit Score as the main indicator for premiums for auto insurance.
Based in Richmond, VA, Crimson provides a data capture device that drivers plug into their vehicle and a private consumer friendly website (www.mydriveiq.com) that shows drivers their driving habits, routes, recommendations for improvement, and a unique Crimson Driving Score. In addition, Crimson provides insurance companies with a turnkey software platform that can underwrite driving insurance based on the Crimson Driving Score. Combined together, Crimson has created an elegant UBI platform that is statistically more predictive and financially more attractive for insurance companies to implement, and a privacy-sensitive, financially equitable offering for consumers.
Mobility, cloud computing, big data and the internet of things are all exciting and important technologies converging simultaneously on the enterprise, said Philip D. Moyer , Managing Director in the Technology Group at Safeguard, who has joined Crimsons Board of Directors. Crimson is proof that these technologies will change our lives and transform the enterprise faster than previous generations of technologies. Crimson has harnessed all of these technologies into a powerful but easily implementable offering that captures, analyzes, and consumerizes vast amounts of data.
Crimson raised a $1.8 million Series A-1 round, of which Safeguard deployed $1.7 million. QED Investors , an early stage investor in big data companies, also participated in the round. Proceeds will be used to expand Crimsons platform and bolster sales and marketing.
Hoopla, Inc. (www.hoopla.net)
Based in West Chester, PA, Hoopla has developed a complete performance optimization system designed to steer the actions and behaviors of employees. Hooplas platform leverages enterprise data, advanced game mechanics and sophisticated communication tools to cultivate a high performance culture and drive results.
The enterprise gamification market is growing rapidly, said Mark A. Mitchell , Principal in Safeguards Technology Group. According to Gartner Research , more than 50% of organizations that manage innovation processes will gamify those processes by 2015. Hoopla is a pioneer in the application of gamification techniques to frontline employees and other departments, and with its long list of customers, is well positioned as a leader in the market.
Hoopla has raised approximately $2.3 million in its Series A round, of which Safeguard deployed $1.3 million. Proceeds from this financing will be used to continue to build out Hooplas platform and to bolster sales and marketing.
About Safeguard Scientifics (SFE)
Founded in 1953 and based in Wayne, PA, Safeguard Scientifics, Inc. provides growth capital for entrepreneurial and innovative life sciences and technology companies. Safeguard targets life sciences companies in Molecular and Point-of-Care Diagnostics, Medical Devices, Regenerative Medicine, Specialty Pharmaceuticals and selected healthcare services, and technology companies in Internet / New Media, Financial Services IT, Healthcare IT and selected business services with capital requirements of up to $25 million. Safeguard participates in expansion financings, corporate spin-outs, management buyouts, recapitalizations, industry consolidations and early-stage financings. For more information, please visit our website at www.safeguard.com, our blog at blog.safeguard.com, download our web app at app.safeguard.com, or you can follow us on Twitter (twitter.safeguard.com), LinkedIn (linkedin.safeguard.com), YouTube (youtube.safeguard.com).
Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Our forward-looking statements are subject to risks and uncertainties. The risks and uncertainties that could cause actual results to differ materially, include, among others, managing rapidly changing technologies, limited access to capital, competition, the ability to attract and retain qualified employees, the ability to execute our strategy, the uncertainty of the future performance of our companies, acquisitions and dispositions of companies, the inability to manage growth, compliance with government regulations and legal liabilities, additional financing requirements, the effect of economic conditions in the business sectors in which our companies operate, and other uncertainties described in the Company's filings with the Securities and Exchange Commission. Many of these factors are beyond our ability to predict or control. In addition, as a result of these and other factors, our past financial performance should not be relied on as an indication of future performance. The Company does not assume any obligation to update any forward-looking statements or other information contained in this news release.
Safeguard Scientifics, Inc.
Matt McLoughlin, 610-228-2123
Source: Safeguard Scientifics, Inc.Copyright Business Wire 2011