Convoke Systems, an information management software company serving the collection industry, secured a $5.5 million Series B round of financing led by Flybridge Capital Partners and QED Investors.
The proceeds will be used to fund new product development, sales and marketing and market expansion - and will fuel an active product pipeline "setting the agenda for solving some of the most serious issues facing the financial services industry," the company reports.
Delivered in a software-as-a-service (SaaS) model, Convoke Systems centralizes, standardizes and automates the handling and movement of consumer and commercial debt information.
At the solution’s center is a set of secure applications for registering, distributing and managing data that verifies debt, validates account ownership, protects private consumer information and provides “on demand” access to legitimate debt owners and servicers.
As a result, the company bridges the information gap that has until now existed between original creditors, their legal networks, collections agencies and downstream debt buyers as debt is repeatedly placed, bought and sold. Across this network, Convoke Systems manages vital information providing documentation and evidence for millions of delinquent and charged-off accounts, working in partnership with major credit issuers.
In doing so, Convoke Systems helps both consumers and creditors alike by providing a more transparent system that ensures compliance and appropriate consumer protection and upholds the principle and value of treating consumers fairly and responsibly. The company counts ten of the top debt buyers in the US as customers.
“Our mission is to fundamentally change the way information supporting debt is managed and moved throughout the industry,” said Founder and President of Convoke Systems, Gary Portney. “Today we are accelerating the delivery and transforming the accuracy of the information that debt buyers, servicers and collectors need when communicating with consumers and attempting to recover legitimate debt obligations.”
As part of this funding, QED Investors partner and former Capital One executive Frank Rotman, together with Jeff Bussgang and Matthew Witheiler from Flybridge Capital Partners, will join the company’s board of directors.
“We are thrilled to back Gary and the Convoke team,” said Jeff Bussgang, general partner, Flybridge Capital Partners. “The company is coming to the market at a crucial time in the rapidly developing recoveries market. The lack of systems and standards results in a huge unmet need for the timely and accurate delivery of account data and the supporting information necessary to validate and verify consumer debt. Convoke is well-positioned to become the leading solutions and service provider for the recoveries marketplace and the focal point for consumer debt registration.”
The collection industry, in the midst of the economic meltdown and the resulting financial reform, has come under fire from Congress, regulators, state attorney generals and legislators throughout the country as thousands of complaints continue to be reported to the Federal Trade Commission and states attorney’s generals about collectors allegedly using unfair and deceptive practices.
This was magnified by the report released this month “Repairing A Broken System: Protecting Consumers in Debt Collection Litigation and Arbitration” and the earlier FTC order that required nine of the nation’s top debt buyers to file a special report on their collections practices.
About Convoke Systems
Founded in 2006, Convoke Systems, Inc., manages, automates, and accelerates accurate business information for the recovery of debt.