RealTime IT News

Xelector Raises $22 Million from Blue-Chip Investors

[June 1] In a second round of funding, pan-European financial services site Xelector has raised 23.5 million euros (nearly $22 million) from blue-chip investors.

The latest funding for Xelector, which enables users to compare and purchase financial services online, places a value on the company of 175 million euros ($163 million).

The eight investors are Apax, Aureus, CGU, Invision AG, Morgan Stanley Dean Witter, Nextech Venture, Overseas Union Bank and Vertex. Dublin-based incubator enba plc supported Xelector prior to the latest round.

Peter Blumenwitz, assistant director at Apax, said that recent turbulence in the markets had allowed venture capitalists to tell entrepreneurs to forget the hype and focus on the basics.

"Companies like Xelector, with economically viable business models bringing tangible benefits to their customers, will always have access to financing - whether they are Internet-based or not," said Blumenwitz.

Xelector has what it calls a unique, private-label B2B2C (business-to-business-to-consumer) model. By means of using a B2B2C business model, Xelector avoids incurring high advertising and marketing costs which it points out are plaguing many B2C players.

Jussi Laurimaa, chief executive officer of Xelector, said his company took its backers' commitment very seriously but fully expected to exceed their expectations.

"We feel that the recent high-profile failures vindicate our approach, which is based on painstakingly applying sober, time-tested Old Economy principles to a New Economy business," said Laurimaa.

Among the initial products available to consumers via the Xelector site will be mortgages, auto insurance and credit cards.