Lodo Software raises $500,000, signs on major customer
Named for and originally based out of Denver's lower downtown district, the company is now headquartered out of Omaha thanks to the recent addition of its CEO, Mark Vipond, who was previously COO of ACI Worldwide. And just as Vipond saw the Omaha-based ACI rise to the top of the financial world, so too are his intentions with Lodo.
"This company is a startup operation, it has a couple customers – banking costumers – but we had the potential of a very significant victory or win for us, which was still in its early stages [when I came on in March]," Vipond said. "In order to secure that business and actually deliver what's need for that costumer we needed to start hiring people to build out and finish the product for delivery."
As of this past Tuesday, their customer, Jack Henry & Associates, began integrating Lodo's product, OurCashFlow, with its own online banking solution, NetTeller. By October of this year, Jack Henry & Associates will be licensing it to financial institutions as part of their overall value-added offerings.
"That's a very significant win for us," Vipond said. "They basically selected two vendors to partner with – us and a company call Digital Insight which is owned by Intuit – as the best of breed solutions."
Screenshot of OurCashFlow from product demo video on lodosoftware.com.
When paired against the popular online personal finance management software Mint, OurCashFlow offers very similar functionality. OurCashFlow, on the other hand, is experienced through one's banking service. "Our belief is that the banks are going to be offering personal finance management solutions…we are basically targeting our solution to be white-labeled by the banks, with their brand, not our brand," Vipond said.
"There's a number of companies like Mint and like Intuit that do direct-to-consumer models," he added. "There are very few competitors that actually try to license their technologies to the banks and most of them are startup type operations."
When Vipond joined Lodo this past March, he came in with a determination to succeed. In this recent Series B round, he personally put money into the company along with Omaha-based TreeTop Ventures, Croghan Investments of Longmont, Colorado, and six other individuals.
Vipond said the initial capital for Lodo was provided by its founder, Conor Keane, and one investor has been involved since 2008. Looking forward, he said, "We are literally just on the beginnings here of going for a Series C round to go and raise [up to] 1.25 million dollars."
Lodo has plans to take its solution internationally. "We've already developed ability to support multiple currencies and multiple languages," said Vipond. "We just want to have some success here domestically before we take advantage of the capabilities that we have in the international marketplace."
To learn more about Lodo's product, OurCashFlow, watch the demo video at lodosoftware.com/lodo/demo.
To view Lodo's SEC Form D for this recent funding round, visit sec.gov/archives/edgar.