XPI, the Toronto-based company behind DisclosureNet, has made its mark by providing disclosure research to investors. XPI strives to give investors confidence, but they’re feeling pretty confident themselves after an investment in XPI — $3 million in venture capital funding — from BEST Funds.
The funding comes on the heels of a great 12 months for XPI. DisclosureNet, their flagship product, now has 400 corporate clients, up 150 from 2009; its client retention rate is 98 per cent; it boasts a compound annual growth rate of 53 per cent since being founded in 2002) and a year over year growth rate of 63 per cent, as Finance Monthly reports.
And now that growth has been rewarded by a second round of funding from BEST Funds. BEST already invested in XPI once, in June of 2009, but after impressive growth, decided to infuse some more cash. This second round of VC funding will be used to improve operations, meet new demand and bolster marketing efforts, including expansion into the U.S., U.K. and Australia.
Finance Monthly quoted BEST Funds CEO John Richardson as saying, “With the growth that XPI has experienced over the past year and the continued, growing adoption of DisclosureNet, it is clear that XPI’s creative and innovative solutions are well received in the marketplace. Our decision to invest in the company a second time demonstrates our confidence in the XPI team and our firm belief that that DisclosureNet is on track to becoming the unequivocal leader in the security filings research space.”
DisclosureNet is a software suite that lets investors comb through securities filings and other documents that should be seen before investing in a company. DisclosureNet calls its service “the most comprehensive security filings database in the world” and provides functions that allow searching, email alerts, Excel integration and English/French translation.
BEST Funds, a VC and private equity firm, has invested in a number of successful start-ups. For example, their investment in Protus IP Solutions just yielded a huge payout when the company was acquired by j2 Global Communications yesterday for $213 million. In addition to Protus and XPI, BEST has a portfolio of a dozen other companies, and has made successful exits earning more than $50 million prior to yesterday’s big news.