Covarity secures $3 Million for US expansion

Kitchener’s Covarity Inc. announced yesterday that it has received an additional $3 Million in venture capital funding from BDC Venture Capital, GrowthWorks, Tech Capital Partners, and VentureLink Group of Funds. The proceeds from the financing will help the company continue to extend deployment of its solution, already used by some of the world’s leading banks, throughout the U.S. market.

“Covarity’s deployment by Canada’s leading banks – a market recognized as having the soundest financial institutions in the world – represents a proven way to help financial institutions get back to the basics of consistent, frequent and detailed loan monitoring,” said Andrew Abouchar, Partner, Tech Capital Partners. “The U.S. market is in need of such a solution in order to improve risk management and address the process deficiencies highlighted by the credit crisis. We’re excited to help Covarity grow and meet this need by extending their proven solution into the U.S. market.”

Despite the economy, Covarity is rolling along. In December they announced that BMO Financial Group had chosen Covarity’s SaaS solution with their software being used to automate and standardize the commercial loan management process across BMO’s 900+ branches.

Covarity offers a hosted, web-based commercial loan portfolio management solution that automates the collection and management of key loan documents and borrower financial data. Covarity’s solution enables financial institutions to mitigate credit and operational risk, prepare for regulatory compliance, improve efficiencies, and increase the value delivered to commercial customers.