Monday, July 14, 2008

NeoSaej banks $7M in first round financing

By Mass High Tech Staff

Online investor auction house NeoSaej Corp. has closed $7 million Series B round of funding to build up its MoneyAisle.com site, which it launched last month.

The financing increases the total amount of venture capital raised by the Burlington-based company to $10.5 million, officials said. Investors included Dover-based Stata Venture Partners II, Concord-based NeoNet LLC and an undisclosed Boston-based money management firm.

NeoSaej plans to use the funds to develop new auction marketplaces and expand products offered by its MoneyAisle.com website, officials said. MoneyAisle users initiate auctions by posting how much they want to invest, and banks bid by offering better rates of yield. It’s an online auction model that founders expect to be popular with small and midsized banks.

NeoSaej was founded earlier this year by Ray Stata, best known as co-founder of chipmaker Analog Devices Inc., and Mukesh Chatter, founder of backbone router company Nexabit Networks Inc. who serves as president and CEO of NeoSaej.

MoneyAisle.com was the company’s first product and claimed 65 participating banks at its launch in June.