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.