Monday March 15, 9:01 am Eastern Time
Company Press Release
SOURCE: ARC Systems
ARC Systems Receives $2 Million in Venture Funding
AUSTIN, Texas, March 15 /PRNewswire/ -- ARC Systems, the
developer of the Internet-based LT2k(TM) automated underwriting
system, today announced that it has secured $2 million in private
equity financing from Verticality Investment Group, LLC (VIG).
Based in Jersey City, New Jersey, Verticality is a venture
capital firm that invests in private technology companies.
``ARC Systems will use a portion of the funding to expand our
facility which will enable us to offer 24x7 service and technical
support to our customers,'' said Ed Jones, CEO of ARC Systems.
``The funding will also help accelerate our marketing efforts and
support continued technology developments.''
ARC Systems' flagship product, LT2k, was designed to automate
the underwriting of the most complicated non-conforming first
mortgages via the Internet. Such companies as mortgage.com,
formerly First Mortgage Network, have now utilized ARC Systems'
services to include conforming and nonconforming mortgages on
their premiere Web sites.
Verticality's extensive research revealed that ARC Systems'
technology filled a void in the market. Furthermore, mortgage
companies believed the ability to automate the underwriting of
subprime mortgages over the Internet was not possible. ``From a
business model standpoint, VIG was impressed with the fact that
ARC Systems doesn't market directly to the end user, but rather
partners with the actual lending institutions who face the
day-to-day headaches present in the mortgage industry,'' said
Hadar Pedhazur, principal of VIG. ``From our experience, this
business-to-business style marketing is very effective and one we
like to support and promote.''
Although the LT2k system is targeted at financial institutions
in the mortgage industry, the system's underwriting matrix
flexibility allows for expansion into any industry that performs
the basic functions of application, credit, documentation, or
underwriting any loan that requires a credit check. Future
partnerships will allow ARC Systems to expand their services into
auto loans, debt consolidation loans and credit card
Via the Internet, the LT2k system takes less than 30 seconds
from submission of an application to render a decision and return
the underwriting decision and credit reports to the lender. The
technology has the capacity to pull up to 10,000 credit reports
and make 5,000 underwriting decisions per hour.
Based in Jersey City, VIG is a venture capital management
company that focuses on investments in private technology
companies, generally those involved in software development
concentrating on finance, the Internet, programming tools,
development environments, distributed object systems and
programming languages. VIG's partners have achieved notable
successes in both large corporate and entrepreneurial venues. For
more information, call Hadar Pedhazur at 201-656-9311 or visit www.verticality.com.
About ARC Systems
Austin-based ARC Systems is a custom software developer of
Internet based solutions for relational database applications.
Through Internet technology, ARC Systems provides products that
create economic and human resource efficiencies, changing the
paradigm of underlying business practices. ARC Systems' flagship
product, LT2k, is the world's first Internet based automated
underwriting system for subprime mortgages. LT2k's underwriting
matrix flexibility allows for expansion into any industry that
performs the basic functions of application, credit,
documentation, or underwriting any loan that requires a credit
check including auto loans, debt consolidations, and credit card
applications. For more information on ARC Systems, call
512-444-9732 or visit www.arcsystems.com
for a free demonstration.
SOURCE: ARC Systems