OptionEase in San Juan Capistrano, whose software helps companies comply with federal stock option rules, has raised $2.5 million in outside equity funding.
The company is developing Internet-housed software tools that allow companies to track their stock options and make sure they comply with increasingly complex federal regulations.
OptionEase was founded in 2006 and launched its first product in 2007. It has 350 customers ranging from private venture-back companies ot multinational, public corporations.
OptionEase didn’t need the money but got two competing offers, said co-founder and CEO Kimberly Kovacs. “We decided to move forward with the round so we can accelerate our growth and launch new technology initiatives. Demand for our application has been tremendous and we see a very large market opportunity that is currently underserved by existing technologies.”
The funding is significant for two reasons:
- Most investors are just putting money into companies already in their portfolio or more mature companies, making it tougher for young firms to raise money.
- Private equity funding dropped 76% in the first quarter.
GADS Option Fund, an Irvine private equity fund, led this newest round of invesment. Current investors also put in more money.
OptionEase previously raised $1.4 million in cash, services and technology from investors including a round of investment from members of Laguna Hills-based Tech Coast Angels and Pasadena Angels, two groups of private professional investors. The firm’s first investor was Jan Scholes, former general counsel for Babcock & Brown, an international investment banking and management firm, and a current OptionEase board member.
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