Online financial services firms CyberCash and Security First have both announced infusions of approximately $15 million through private placements.
CyberCash (CYCH), which develops security software for online banking transactions, announced yesterday that it has raised $15 million in equity capital through a private placement of convertible preferred stock.
The holders of the preferred stock are subject to certain limits on the number of shares that they can convert at any one time.
CyberCash reported a net loss for the second quarter of 1997 of $6.3 million on revenues of 812,361.
On a related front, Security First Technologies (SFNB) announced that it has raised $14.2 million dollars through the issuance of 569,978 shares of common stock and 159,952 shares of preferred stock. Barnett Banks, Citicorp, The Prinicpal Financial Group, Synovus Financial Corporation, Huntington Bancshares, and Wachovia Corporation each purchased approximately $1 million of stock in Security First Network Bank, Security First's parent company.
Security First makes Virtual Finance Manager, an application that allows financial institutions to offer products and services online through one platform.
Security First Network Bank reported a loss of $5.9 million for the first quarter of 1997.
Those stock purchases, in addition to licensing agreements with some of those financial institutions, "will go very far" to help meet Security First's cash flow requirements for 1998, said Robert Stockwell, chief financial officer of the company. Stockwell would not elaborate on what the money was earmarked for, except to say that it would go towards "ongoing further development of software."