eSignLive Technology Secures $11 Million USD in Second Round - Lehman Brothers Close the Deal
Montreal, Qc, September 26, 2000 — Silanis Technology Inc., a leading developer of electronic signature and approval management solutions, announced today that it has secured $11 million (USD) in second-round financing. New York-based Lehman Brothers Venture Capital, a unit of Lehman Brothers Holding Inc., closed the round with Quebec-based Sofinov, a subsidiary of the Caisse de dépôt et placement (CDP) and Investissement Desjardins joining as key investors.
By more than tripling Silanis’s first round of funding, the investment sends a strong message of investor confidence in the electronic signature market’s growth potential. With the US Electronic Signatures in Global and National Commerce Act (E-SIGN) passing into law October 1, the funds reinforce Silanis’s leadership position in developing solutions that transform paper-based documents requiring signature approvals into legally-binding, authenticated e-business processes.
“We are confident that the demand for electronic signature and approval management software will escalate over the next few years. Those customers looking to deploy enterprise-wide solutions will, however, have a stringent set of security and ease-of-use requirements,” said Michael J. Odrich, Managing Director of Lehman Brothers Venture Capital. “With almost a decade of expertise in managing the technical, legal and business requirements for electronic signatures, Silanis is the only company that has the industry and technical know-how needed to meet the needs of this exploding market.”
Silanis electronic signature and approval solutions allow enterprises to implement a true end-to-end e-business model by enabling users to electronically sign, authenticate, and manage complex approval processes entirely electronically. Silanis solutions manage the authenticity of an e-business process and provide tools that can be integrated into a variety of web- or desktop-based applications to facilitate B2B, B2C and B2E processes requiring signature approvals.
“Ensuring that critical business documents and transactions can be electronically signed, sealed and delivered is not only imperative to e-business, it will be demanded by organizations as they become more comfortable with the implications of the E-SIGN legislation," said David Yockelson, SVP and Director, META Group. “The ability to offer these capabilities in a simple solution that can leverage leading PKI solutions, business applications, and collaborative facilities will be incredibly important as the Web evolves into e-commerce's key profit center.”
In the past year, Silanis developed initiatives to maximize the adoption of electronic signature technology by creating scalable security models for electronic signatures and approvals that make e-signing straightforward and simple while assuring that required authenticity levels are met for any given e-business process. In addition, Silanis forged alliances with major software and service providers such as Entrust Technologies and RSA Security to provide businesses with complete enterprise-wide solutions that meet their electronic signing and approval needs. Recent partnerships with Private Express and Canada Post are providing customers with additionally secure methods of delivering signed, sensitive documents over the web.
To advance the consumer adoption of electronic signature technology, Silanis created onSign.com, an internal start-up company that offers the first free, legally binding signature software targeted at home and SOHO users. With 65,000 downloads - or one individual copy downloaded every other minute – there is significant consumer interest for electronic signing.
“Our user base has doubled since E-SIGN was passed and the adoption curve is only beginning,” said Silanis President Tommy Petrogiannis. “Companies are moving to the Internet at an accelerated rate to automate and streamline their business processes. Paper intensive, time critical industries such as finance and insurance are leading the way but we’re seeing movement across all markets with high levels of automation. These funds will allow us to further expand our market share by broadening our product development, establishing greater industry partnerships and alliances, and increasing our sales and marketing efforts.”
Founded in 1992, Silanis Technology Inc. develops ApproveIt, the industry’s first and only multi-signature electronic approval management software. Over 800 organizations currently use Silanis products in government, business, insurance, medical, and health care sectors, including the US Joint Chiefs of Staff, TRW, Williams Group, Nationwide Insurance, and National City Bank. Silanis software is recognized for its extensive capabilities, scalable security, ease-of-use, and ease of integration. Silanis’s world wide sales headquarters are located in Washington, D.C. The company also has a regional office in Campbell, CA and a R&D center in Montreal, Quebec, Canada.
About Lehman Brothers Venture Capital
Lehman Brothers Venture Capital is the principal venture capital arm of Lehman Brothers Holdings Inc., a global investment bank serving the financial needs of corporations, institutions, governments and high-net-worth investors worldwide. Managing in excess of $450 million on behalf of Lehman Brothers, its employees and third party investors, Lehman Brothers Venture Capital focuses on making growth-oriented equity or equity-related investments in companies capable of turning innovative technology and management solutions into successful businesses. Established in 1995, the Group has invested in more than 40 companies engaged in the technology, Internet and life sciences sectors. Lehman Brothers Venture Capital is headquartered in New York with additional offices in Silicon Valley and Los Angeles.
With over $105 billion in assets at the end of 1999, the Caisse de dépôt et placement du Québec (CDP) offers a complete range of fund management services worldwide. Its subsidiary, Sofinov offers strategic financing to innovative companies with superior growth and performance potential based on leading-edge technologies. The Company is also developing partnerships with venture capital funds in Canada, the United States and Europe. Since its inception in 1995, Sofinov has acquired a portfolio of over 138 investments now valued at more than $1.6 billion. Together, the CDP private investment subsidiaries hold a portfolio valued at more than $12 billion.