Ingeo Completes Most Productive Month in Company History,
Poised for Accelerating Revenues and Profitability
Ingeo, the premier U.S. ele
ctronic recording provider for the real estate marketplace, today announced that October 2010 was the most productive month in the company’s 14-year history, both in terms of revenues and profitability.
“We are encouraged by the tremendous momentum we are achieving,” said Karl Klessig, CEO of Ingeo. “Propelled by a surge in mortgage lending submitters to our system coupled with an expanding footprint of counties using Ingeo’s electronic network, we are now ideally positioned to extend our leadership in the real estate e-recording market.”
While specific revenue figures for the private company are proprietary, Ingeo established new standards for revenue and profitability in October 2010—eclipsing the record totals the company achieved in September 2010. Already, 2010 is the most profitable and highest revenue-producing year in company history. Ingeo is on pace to double its 2009 revenues this year. Buttressed by current contracts in place, the company anticipates that its 2011 revenues will double 2010 performance.
Reinforcing Ingeo’s strong revenue and profitability performance, transaction volume has grown more than 25 percent in each successive quarter of 2010. Q4 2010 is on pace to exceed Q3 volume by 27 percent, with annual 2010 transaction volume anticipated to more than double last year’s numbers.
“Electronic records are the future of the real estate ecosystem, and we are extremely bullish on Ingeo,” said Kent Madsen, managing director of EPIC Ventures, a major investor in Ingeo. “There is an emerging wave of demand for cost-effective and time-saving electronic recording services, and we have no doubt that with its excellent leadership and staff, Ingeo is the company in the industry best able to take advantage of this trend.”
Ingeo has built the nation’s largest county e-recording network: it currently services a population base of 130 million (43 percent of the U.S. population) in 31 states, and plans to increase its population coverage an additional 30 million in the next year to encompass the majority of the nation’s population. The company’s customer base has more than doubled in the past year.
In addition to expanding its customer base, Ingeo is working to develop technology and product enhancements to its iRecord™ county e-recording solution—already the industry’s most comprehensive. The company is also working diligently to expand its e-mortgage offering and other services in response to industry demand from banks, title companies, attorneys, mortgage firms, county recorders and other users of electronic records.
“We’ve been proud to work with Ingeo for several years,” said Jeremy Pomerantz, SVP at Nationwide Title Clearing in Palm Harbor, Florida. “Providing document services for eight of the nation’s top 10 servicers, we are constantly driven to innovate. Working with a partner like Ingeo has made it easier to take our documents to some of the nation’s County Recorders electronically, resulting in cost savings for us and superior service levels for our customers.”
&A with Karl Klessig, CEO of Ingeo Systems, Inc.
Q: Briefly describe Ingeo’s product.
Ingeo Systems, Inc. is in the business of electronically recording land
title documents. Whether they be mortgages, deeds, liens, release,
assignments, etc. these documents
have traditionally been paper based, requiring physical delivery, individual
check payments, tracking follow-up, return to the originator and follow-up to the
borrower. All of this results in a significant set of steps that incurred considerable
costs, required substantial labor, and which was difficult for lenders to remain
in compliance meeting all the legal and time constraints. Ingeo developed a very
unique workflow engine which combined with a proprietary database catalogs the
requirements of the lender and each of their more than 100 possible documents and
applies rules and logic to deliver the correct formatted information unique to
each of the thousands of recording jurisdictions residing in county offices. This
one-to-one matching, which occurs dynamically for each transaction, is a major
feature of the service we offer. Combined with daily reconciliation of payment
accounts for each submitter and each receiving county results in a high yield
system that has substantially improved the throughput and dramatically reduced
the errors. Another cornerstone of our capability is to meet all the legal, security
and regularity requirements for each transaction.
Q: How does Ingeo Systems, Inc. uniquely stand out among their competition?
a number of companies decided to tackle the entire mortgage document business,
and all of them failed except Ingeo. Ingeo took a different track choosing to
focus exclusively on the recording aspect assuming that the production and
consumer management side would be dealt with by the lenders and their primary vendors.
Ingeo started out with a workflow engine recognizing that the process was much
more complex than most people were appreciating. By focusing on the flow, the document
style and content, the electronic signing and notarizing, and the electronic payments
Ingeo was able to optimize the process and build a best of breed service. By combining
this with enterprise level operation and security we were able to deliver a result
for the most demanding clients. Ingeo took this approach to the largest lenders
in the U.S.
and was able to get virtually every major lender to sign on for the service, enabling
Ingeo to both scale its operation and help to justify to the county and state agencies
the need to accept this approach. Ingeo has been actively working with state legislators
to enable the legislation that allows the process to operate and be legally
Q: What in your background enabled you to have the skills you needed to develop Ingeo Systems, Inc. product?
I have been fortunate to be responsible for delivering
successful results at a number of enterprise corporations including Quadratron,
Enterprise Solutions, Isocor, Critical Path
and Xdrive Technologies. With a technical background in Physics and
Mathematics I can relate to the requirements of the industry and what it takes to
deliver a successful product as well as guide the development team producing a highly
complex technical solution. Based upon this experience I also focused on making
it a transaction based process. I also have managed quite a range of companies,
both in size and location and was familiar with what it takes to sign and manage
enterprise level customers. Doing a turnaround, which was essentially a complete
restart is something I enjoy and thrive on, creating the discipline to make it happen.
Q: What has helped Ingeo Systems progress the most in terms of getting the product off the ground and into the market?
Perseverance, persistence and scalability.
Dealing with banking institutions that are slow to change combined with county
and state governments that almost never alter their process requires much perseverance
to encourage and enact change, even when the value proposition appears obvious.
Ingeo is almost fifteen years old and has been working to enact electronic recording
for ten years. We never gave up and kept on pursuing the lenders and counties until
we got both sides to a critical mass that supported the volume that was needed to
achieve a profit. As we grow our essentially fixed cost operation is resulting
in dramatically increasing margins. Finally we knew that we had to scale dramatically
to pull this off and scaling was a major component of everything we have done. It
was something that could not be an afterthought.
Q: Why did you choose to partner with EPIC Ventures?
We are one of the oldest companies in Epic’s portfolio. Starting
out with the Wasatch Venture Funds and evolving from there we have been
fortunate to have Epic partners on our Board to support Ingeo through its long
gestation period and
the guidance that was needed. Epic was already an investor when I came on
board and there was never any hesitancy about supporting the Company once we
had a viable plan in place.
Q: Where do you go from here?
The land title document market we currently serve is still
largely untapped with more than ninety percent still available. Ingeo has
already begun working on a solution for the automobile market and has had
discussions with potential customers and partners in the insurance, medical and
legal markets. Any one of these offers substantial opportunity for growth.
Portfolio Company Highlight
Iosil Energy To Ramp Up Groveport Plant
Although he lives in New Mexico, Iosil Energy Corp. CEO
feels right at home in Groveport where his company has started to develop a pilot plant that will produce polysilicon, a raw material for solar cells.Iosil looked at sites in several states, including New Mexico where it is based, but felt Ohio and Groveport were the best spot for the $13.5 million facility, Fuller said. State and local financial incentives, Central Ohio’s high-quality work force, a favorable building lease and a business climate friendly to renewable energy companies clinched the deal.
“The reality,” Fuller said, “is that we found the enthusiasm and opportunity to be greater in Ohio. It’s nice to be wanted.”
The state has awarded Iosil a 50 percent job creation tax credit worth an estimated $254,500 over six years. Fuller said the company also has been offered a $500,000 business recruitment grant from the state and hopes to qualify for funding from Ohio’s Third Frontier technology development program.
In addition, Groveport will abate 100 percent of the real property tax for Iosil’s 30,700-square-foot facility off Green Point Drive through 2015, said
, the village’s development director.
In return, Ohio and Groveport get a plant that’s expected to employ about 20 people when it goes online in nine to 12 months. Fuller said the facility, which Iosil took possession of in September, will serve as a showcase for customers, investors and suppliers as Iosil tries to build its business.
If all goes well in Groveport, the three-year-old company will be able to take its production of high-purity polysilicon from the pilot stage to commercial-scale manufacturing in the next few years, Fuller said. That would drive the need for a larger plant that could employ an estimated 120 people.
“There’s a ready market to take up our product as soon as we’re ready to manufacture it,” he said, noting that more than 80 percent of the world’s $20 billion-a-year solar industry makes solar cells from silicon.
Iosil will manufacture polysilicon through a process that involves recycling the waste material created during production of silicon wafers for semiconductors and solar cells. The privately held company’s investors – a mix of venture capital firms – acquired the technical rights to the process from the National Renewable Energy Laboratory in 2007 and have been developing it at the National Institute for Nanotechnology in Edmonton, Alberta.
Fuller said one of the main reasons Iosil selected Central Ohio for the pilot plant is the region’s ample supply of chemical process engineers and manufacturing managers. The plant will need workers with that expertise and Fuller said he expects wages to average about $80,000 a year because of the high percentage of professionals to be employed .
Such high-paying, professional jobs in manufacturing will help Groveport broaden its business base, Green said in an e-mail to
Columbus Business First
“Our economy is largely supported by warehousing and distribution,” he said, “so the Iosil project helps us diversify our business base a bit more and demonstrates that Groveport is a great location for more than distribution.”
Fuller said another factor in selecting Groveport was that the building’s owner and manager, Meritex Columbus LLC, offered a high-quality facility that will present well to visitors, investors and suppliers. Iosil is taking about a third of the 116,200-square-foot building with the rest leased by UPS Mail Innovation and HP Products, said
, Meritex’s portfolio manager.
Iosil also has found Ohio’s business climate to be friendly to renewable energy companies, with Fuller saying TechColumbus,
Edison Welding Institute
Ohio State University
and others have already been supportive.
It also doesn’t hurt that Ohio legislators in 2008 created a renewable energy standard that requires 0.5 percent of the state’s electricity to come from solar energy by 2025. That seems to have gotten business and government leaders excited about recruiting companies such as Iosil, Fuller said.
“Everybody perks up,” he said, “and welcomes you when they hear a solar business is interested in locating in Ohio.”
Lumidigm Receives Frost & Sullivan New Product Innovation of the Year Award for
Albuquerque, New Mexico — November 10, 2010 — Lumidigm today announced that the research firm
Frost & Sullivan has found Lumidigm to be at the top of its class in fingerprint biometrics product innovations
The 50-year old research firm has awarded the New Product Innovation of
the Year Award, Fingerprint Biometrics, North America, 2010, to
Lumidigm. According to Frost & Sullivan, Lumidigm’s “innovative
technology allows Lumidigm fingerprint sensors to provide highly
accurate biometric data even in adverse conditions where traditional
fingerprint sensors fail.”
“Lumidigm’s sensors do more to meet performance requirements than the
fingerprint sensors of any other vendor surveyed,” relates
industry manager for Frost & Sullivan’s electronics group. “Since
they are small, light and compatible, possessing multiple communication
interfaces, Lumidigm biometric sensors can be easily integrated into any
existing system. The return-on-investment (ROI) of Lumidigm sensors is
much higher than that of traditional biometric sensors.”
“For many years now, the promise of biometrics has not been fully
realized in large part because conventional biometric technologies rely
on unobstructed and complete contact between the fingerprint and the
sensor, a condition that is elusive in a world that is wet, dry, or
dirty and where users are not all young office workers with great skin
who are experienced at using biometrics,” emphasizes
Lumidigm senior vice president of worldwide sales and marketing. “Frost
& Sullivan has recognized that Lumidigm’s more effective solution,
based on using multiple spectrums of light and advanced polarization
techniques to extract unique fingerprint characteristics from both the
surface and subsurface of the skin, provides results that are more
consistent, more inclusive and more tamper resistant.”
According to Frost & Sullivan, the biometrics industry averages
for False Accept Rates (FAR) and False Reject Rates (FRR) are
unacceptably high due to problems with data collection and poor image
quality. That’s because, Scarfo explains, traditional technologies rely
solely on surface fingerprint characteristics that can be obscured by
moisture, dirt or wear. Meanwhile, the “inner fingerprint” lies
undisturbed and unaltered beneath the surface. Lumidigm’s
multispectral imaging technology
combines surface fingerprint information with subsurface fingerprint
information and reassembles it in an intelligent and integrated manner,
resulting in superior biometric performance.
“While fingerprints should be more convenient, cost-effective, and
secure than other forms of authentication, conventional fingerprint
sensors simply don’t deliver the real world performance required to meet
customer expectations in many applications,” adds Scarfo. “As this
award underscores, Lumidigm sensors can be reliably used for getting on a
company’s data network, operating a forklift, signing for merchandise,
creating major Citizen ID programs and virtually every type of
application in which organizations now feel forced to use cards, keys or
PINs. Biometrics can finally get beyond the door.” www.lumidigm.com
EPIC Team Highlights
Kara Jaggi gets promotion: "New Mom!"
Kara Jaggi, former Office Manager of Epic Ventures, has moved on after nearly three years with the company. Kara and her husband have started a family and she wanted to be home with her son. EPIC Ventures cannot thank Kara enough for her years of dedicated expertise. She was an absolute joy to work with and will be missed dearly. We hope to see her soon as she will be back to help with our Annual Parters Meeting in March. Thank you Kara!
Hailey Oram joins EPIC Ventures
Hailey Oram is the Office Manager at EPIC Ventures where she
is responsible for the daily office operations, scheduling, investment
documentation and record keeping and event planning. Prior to joining EPIC, Hailey was an Administrative
Assistant in the Corporate Tax Department of Zions Bancorporation. She is currently attending Weber State
University where she will receive a B.S. in English Education.
Where We’ve Been & Where We’re Going
– MD4 Utah 2010 Summit – SLC, UT (Kent as Funding & Deal Flow Panel member)
– Governor’s Venture Capital & Private Equity Roundtable – SLC, UT (Kent)
– Utah Youth Village Helping Hands Gala – SLC, UT (Ryan H.)
– Perfect Business Summit 2010 – Las Vegas, NV (Kent)
– Game Developers Conference Online- Austin, TX (Stephanie)
– CleanTech Open – Denver, CO (Kent as a judge and panelist)
– NMBio Luncheon and Seminar – Albuquerque, NM (Katie on the board of NMBio)
– Entrepreneur Summit and NM WIRED Event – Albuquerque, NM (Katie on the board of NM WIRED)
– Ignite New Mexico – Albuquerque, NM (Katie as a judge)
– Plug and Play iEXPO – Sunnyvale, CA (Katie participating)
– UTC Hall of Fame – SLC, UT (Chris & Kent)
– Utah Entrepreneur Challenge – SLC, UT (Kent as a speaker)
– Utah 2010 Angel Investor Update – SLC, UT (Kent)
– OEN Venture Northwest – Portland, OR (Ryan D.)
– Intel Capital CEO Summit – Huntington Beach, CA (Chris)
– DFJ Mega Week – Half Moon Bay, CA (Kent and Katie)
– Invest Southwest – Scottsdale, AZ (Stephanie as chair)
– NMBio Holiday Luncheon and Seminar (Katie on the board of NMBio)
– Women Tech Awards Finalist Circle Invitation- SLC, UT (Chris)
– Medsphere Board of Directors Dinner (Nick)
EPIC Board of Directors Committee Meetings-Salt Lake City, UT (Nick, Chris, Kent, Ryan D.)
– UVF Private Equity Summit (Nick, Kent, Chris)
UVF Disruptive Technologies Panel (Chris)
AHN Advisory Board of Directors Meeting- Scottsdale, AZ (Nick)
– Investors Choice Ski Day- Deer Valley Resort, UT (Kent)
– Mensa E-gaming Colloquium- Austin, TX (Stephanie)
EPIC Ventures Annual Limited Partner Meeting- Salt Lake City, Utah (EPIC Team)
iovation: Thank you! Together, we stopped 35 million fraud attempts in 2010!
As the holidays find many of us spending time with family and
friends, I wanted to take a moment to thank everyone for their hard work
and dedication this past year. Combating online fraud and abuse is no
easy task and we don’t do it alone. We work in concert with thousands
of virtual crime fighters around the globe. It takes tremendous focus,
discipline and collaboration, something each of our customers, partners
and employees prove every day.
In 2010, we screened nearly 2 billion transactions and stopped over
35 million fraud attempts. The collaboration we support and the
meaningful impact we have in stopping all types of online fraud and
abuse are part of what makes us proud of what we do here at iovation.
This was our most successful year ever and we have even higher
expectations for next year. Thanks for working with us to make the
Internet a safer place. Here’s to seeing what we can accomplish
together in 2011. www.iovation.com