With new compliance requirements looming for already jumpy banks, startup software developer Strevus has raised $6.5 million for its risk and compliance service.
The company raised its first institutional round from lead investor Blumberg Capital and U.S. Venture Partners after picking up seed investments from a who’s who of the technology community, including BlackBerry CEO John Chen; Ken Goldman, the Yahoo CFO; and former Oracle COO Terry Garnett.
“The world has changed quite a bit with the financial service meltdown, and regulatory compliance is the resulting fact in today’s world,” said Strevus Chief Executive Ken Hoang in an interview.
Think of Strevus as a monitored and managed networking tool to ensure compliance with new regulations for financial services firms that are going to start taking effect this year.
“Compliance is not a competitive advantage today. The government is picking off [financial services firms] institution by institution,” Hoang said.
The first market that Stevrus is looking to address within the alphabet soup of new and updated compliance requirements being issued by the federal government is the Foreign Account Tax Compliance Act.
FATCA targets tax evaders in the U.S. who aren’t properly reporting overseas financial...