NextGen Invests in PrimeWire
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Fairfax, Va.-based venture capital firm NextGen Capital LLC has invested $1 million in Atlanta's PrimeWire, a developer of benefits administration applications. The funds will be used to support recent contracts requiring custom Web development and systems integration efforts. The terms of PrimeWire's agreement with NextGen Capital were not disclosed.
Delivering solutions through an application service provider (ASP) model, PrimeWire utilizes Web technologies and an intuitive navigational design to connect employers, employees, insurance companies, strategic partners and other service providers.
PrimeWire offers services that automate transactional processes by eliminating routine manual functions traditionally performed by TPAs and corporate human resource departments while providing members immediate and round-the-clock access to their benefits and other important employee-related information.
"PrimeWire's business model is being validated by recent activities, and their technology places them at the forefront of servicing multiple constituents relevant to the insurance industry," said Carl Eckstein, co-founder and director of NextGen Capital. "Our relationship with PrimeWire demonstrates our commitment to invest in the next generation of communications and information technology firms."
NextGen Capital manages two venture capital funds, which invest in early-stage technology-based companies in the mid-Atlantic region. Investors backing NextGen Capital are primarily executives from the technology and financial sectors who provide their expertise to companies in the fund's portfolios. Other investments include SynXis Corp. and Servicebench.com.