Funding led by Fidelity Ventures and General Catalyst Partners
Boston, MA - May 23, 2005 - QUMAS, the leading developer of enterprise risk and compliance management solutions, today announced a $10 million investment, from Fidelity Ventures and General Catalyst Partners in the US.
Proceeds from the funding will be used to enhance the company's risk and compliance solutions, for a significant expansion of the company's sales and marketing operations in the United States, and to increase the level of customer support for QUMAS's growing list of clients. QUMAS will significantly expand U.S. operations, including establishing a new corporate office in Boston.
"With this additional capital, we are in excellent position to take advantage of our experience and technical leadership in the compliance solutions marketplace," said Paul Hands, CEO of QUMAS. "Regulatory & Operational compliance is a major issue for the financial services and pharmaceutical industries and it is not going away. This capital will fuel the expansion of our business and enable us to help more companies turn compliance requirements into business efficiencies and achieve compliance across the board."
Regulatory Compliance IT — A Burgeoning Market
Industry and financial analysts alike have asserted that the market for IT solutions that help organizations achieve regulatory compliance is huge. According to IDC, the worldwide information management for the regulatory compliance market will pass the $20 billion mark in 2009 and grow at a 22 percent compound annual growth rate through the 2005-2009 forecast period. IDC also says that compliance and reporting issues will play a larger role in IT initiatives, which will lead to upgrades and improvements.
In an increasingly regulated corporate environment, regulatory compliance is a core business issue. At the same time, achieving complete, enterprise-wide regulatory compliance while maintaining corporate performance and adhering to strict budgets can be extremely complex. QUMAS is the only vendor that offers a portfolio of products that enables the financial services and life sciences industries to achieve complete, enterprise-wide compliance with a broad range of regulations and initiatives such as:
- Financial Services Life Sciences
- USA PATRIOT Act
- Anti-Money Laundering (AML)
- SEC 17a-3 and 17a-4
- Investment Company Act 38a-1
- Corporate Governance
- COSO Framework Sarbanes-Oxley
- 21 CFR Part 11 (HIPAA)
- Manufacturing (GMP)
- Clinical Operations
- Change Control
- Regulatory Affairs
QUMAS has more than 250 client installations including Fidelity Investments.
"Operationally and financially, regulatory compliance is a significant business issue that requires strong yet flexible technical solutions," said Larry Bohn, managing director, General Catalyst Partners. "Companies now are feeling the real pain of non-compliance and it is costing them billions. QUMAS' solutions can help these companies meet compliance requirements quickly while streamlining their overall operations."
"Ensuring regulatory compliance can be a significant challenge for many companies. QUMAS is well-positioned to help address this important and growing need in the enterprise marketplace," said Simon Clark, partner, Fidelity Ventures. "We see a great opportunity to assist QUMAS with its 'go-to-market' strategy, specifically in the financial services industry, not only through our investment, but also by facilitating a collaborative relationship with Fidelity Investments' IT organization."
With over a decade of experience, QUMAS is the only global compliance software company offering a complete solution to regulated industries. Recognized as the world leader in Enterprise Risk and Compliance Management, the company is a regular winner of industry awards for innovation and excellence.
QUMAS's comprehensive suite of compliance management applications has been developed specifically for regulated industries and ensures corporate compliance with the full spectrum of global regulations, including Investment Company Act 38a-1, the USA PATRIOT Act, Sarbanes Oxley, 21 CFR Part 11 and cGxP.
QUMAS provides highly configurable applications, ready for validation and deployment within regulated environments. Based on open systems platforms, QUMAS technology integrates seamlessly with existing corporate databases, applications, operating systems and hardware from all major vendors.
The QUMAS worldwide headquarters are located in Cork, Ireland, with U.S. headquarters in Florham Park, NJ, and satellite offices throughout the United States and Europe.
For more information visit our Web sites at www.qumas.com.
About Fidelity Ventures
Founded in 1969, Fidelity Ventures invests private equity in entrepreneurial companies preparing to "go-to-market" in the information technology and communications sectors. By combining a collaborative partnership with a global network, Fidelity Ventures enables its portfolio companies to accelerate their market entrance and become leaders in their respective fields. During the last three decades, the firm has contributed to the success of such industry leaders as GeoTel Communications (IPO subsequently acquired by Cisco), Teleport (IPO subsequently acquired by AT&T) and COLT Telecom (NASDAQ: COLTY). Recent investments include ONI Systems (IPO subsequently acquired by Ciena), WaveSmith (acquired by Ciena), Airespace (acquired by Cisco Systems), and Connected (acquired by Iron Mountain). Fidelity Ventures currently manages more than $650 million in venture capital, and invests in U.S.-based companies out of its Boston office, and in European companies out of its London office.
About General Catalyst Partners
General Catalyst Partners is a private equity firm that invests in exceptional entrepreneurs and technical founders who are building the software solution and technology platform companies that will lead innovation and transform industries. Founded in 2000, General Catalyst Partners leverages its principals' extensive operational, business development and technological expertise to provide portfolio companies with a catalyst for success through business building and partnership development assistance. General Catalyst is headquartered in Cambridge, Mass.
For more information, please visit: http://www.generalcatalyst.com.
QUMAS and QUMAS Compliance Suite are either registered trademarks or trademarks of QUMAS. All other trade names, trademarks, and service marks are the rightful property of their respective owners.
Director of Marketing