ClaimCard Secures $3.3 Million In Second Round Of Financing From Sutter Hill Ventures

ClaimCard, Inc., a provider of Web-based software applications and innovative payment systems to the insurance industry, announced today that it has secured a second round of financing totaling $3.3 million from Sutter Hill Ventures. The funding will be used to expand and enhance its transaction processing capabilities and accelerate the growth of its product portfolio. Tench Coxe, general partner of Sutter Hill, has joined ClaimCard's board.

"The ClaimCard MasterCard and our suite of software applications, Xclaim, have been well received in the marketplace," said Larence Park, president & CEO. "Sutter Hill's investment brings the capital we need to fuel our growth, and the resources of a venerable firm that is focused primarily on companies like ClaimCard that pioneer services in high growth markets."

Coxe said, "We are very excited about ClaimCard because it has a visionary team that understands three important technologies: payment systems, the Internet and insurance claims management. When the company succeeds, it will revolutionize the service levels that insurance customers receive."

The five partners at Sutter Hill have operating backgrounds, significant venture capital experience, and understand the challenges that early-stage companies face. Sutter Hill was a startup investor at Apollo Computer, Avant, BroadVision, Edify, Forte, Linear Technology, LSI Logic, Mentor Graphics, OnStream Networks, Primary Access, Quantum, NVidia, Palm Computing, SQL Financials and Xidex. In the medical arena, Sutter Hill was an original investor at Aksys, Biovest, COR, Dionex, Molecular Devices, ISIS, Lifescan, Neurex and Oacis.