Safeguard Scientifics Leads $5.3M Series B Financing for Clutch
Safeguard Scientifics Leads $5.3M Series B Financing for Clutch
Backs successful entrepreneur, Ned Moore, who previously co-founded Portico Systems, which was acquired by McKesson
WAYNE, Pa.--(BUSINESS WIRE)-- Safeguard Scientifics, Inc. (NYS: SFE) is backing successful entrepreneur Ned Moore in his new venture, Clutch Holdings, Inc., the only mobile commerce platform that unifies gifting, loyalty programs and shopping by bringing the most relevant information to consumers and the most targeted customers to merchants. Safeguard led the Series B financing with $5.0 million, and also participated in the Series A financing in early 2013 with $500,000, which brings Safeguard's primary ownership to 23%.
"We are excited to be supporting Ned Moore, a successful Safeguard entrepreneur, along with co-founders Andy O'Dell and Dan Guy and the rest of the team at Clutch," said Erik B. Rasmussen, managing director, technology at Safeguard, who will be joining Clutch's board of directors. "Clutch is capitalizing on the convergence of mobile commerce with offline and online commerce by providing a platform that unifies offline, online, and mobile loyalty and gifting into one platform. This allows retailers to launch loyalty programs seamlessly to their customers, whether they are shopping in the store, online or with their smartphone. This is critical because studies show that retailers with loyalty and gifting programs see 46% more purchases than retailers that don't have loyalty and gifting programs. As a result, it's essential for retailers to launch loyalty and gifting programs across all of the customer touch points, especially mobile."
Previously, Ned Moore was co-founder, chairman and CEO of Portico Systems, which provided enterprise software solutions into the healthcare payer market. Portico was a Safeguard partner company from 2006 to 2011, when it was acquired by McKesson for $90 million, in cash, generating a 4x cash-on-cash return for Safeguard.
"I have always been interested in mobile technology," said Moore, co-founder, chairman and CEO of Clutch. "After Portico was acquired by McKesson in July 2011, the opportunity to start Clutch presented itself. With support from our angel investors, we launched our mobile app in December 2012 and have subsequently acquired two companies to expand our product offering through the Series A and Series B financings. We are excited to have the team at Safeguard on board. They are a proven team with deep operational expertise that I know will drive value for Clutch's bottom line."
Headquartered in the Greater Philadelphia area, Clutch will use proceeds to further develop its mobile commerce platform. Additionally, Clutch acquired ProfitPoint, a leading supplier of loyalty and gifting. ProfitPoint's configurable loyalty platform, which unifies online and offline loyalty programs in one solution, together with Clutch's mobile commerce capabilities will provide clients with an end-to-end platform that will enable them to reach their customers via in-store, online and mobile channels. ProfitPoint brings more than 3,000 merchant clients to the Clutch ecosystem, as well as a merchant card processing platform.
Clutch touches the entire spectrum of loyalty and gifting e-commerce for retailers. Clutch provides B2B clients with a horizontally integrated digital marketing platform along with white labeling services. For B2C customers, Clutch offers a mobile app that features a mobile wallet that holds gift cards, loyalty cards, and coupon information, as well as a gifting solution that enables a consumer to buy and send gift cards virtually. According to Transparency Market Research Group, the global mobile wallet market is expected to reach $1.6 trillion by 2018, growing at a CAGR of 30.7% from 2012 to 2018.
About Clutch Holdings, Inc.
Clutch provides the only mobile platform that unites shopping, loyalty programs and gifting, delivering the most relevant offers to consumers and the most targeted customers to merchants. With its proprietary recommendation engine, the Clutch mobile app enables consumers to get the best deals, give the best gifts, and share it all with their friends and family in a single place. For more information, please visit www.clutch.com, "Follow" Clutch on Twitter @ClutchShopping and/or "Like" Clutch on Facebook.
About Safeguard Scientifics
Founded in 1953 and based in the Greater Philadelphia area, Safeguard Scientifics, Inc. (NYS: SFE) is celebrating 60 years of fostering innovation and entrepreneurship. Today, Safeguard provides growth capital and operational support to healthcare and technology companies in medtech, healthtech, specialty pharmaceuticals, financial technology, digital media, and Enterprise 3.0. For more information, please visit our website at www.safeguard.com.
Safeguard Press Resources
LinkedIn: Safeguard Scientifics
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, our ability to make good decisions about the deployment of capital, the fact that our partner companies may vary from period to period, our substantial capital requirements and absence of liquidity from our partner company holdings, fluctuations in the market prices of our publicly traded partner company holdings, competition, our inability to obtain maximum value for our partner company holdings, our ability to attract and retain qualified employees, market valuations in sectors in which our partner companies operate, our inability to control our partner companies, our need to manage our assets to avoid registration under the Investment Company Act of 1940, and risks associated with our partner companies, including the fact that most of our partner companies have a limited history and a history of operating losses, face intense competition and may never be profitable, the effect of economic conditions in the business sectors in which Safeguard's partner companies operate, and other uncertainties described in our filings with the Securities and Exchange Commission. Many of these factors are beyond the Company's ability to predict or control. As a result of these and other factors, the Company's 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 press release.
Heather R. Hunter, 610-975-4923
Director, Marketing Communications
KEYWORDS: United States North America Pennsylvania
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