OneCore.com Wraps $30M Third Round

Financial service-oriented companies continue to attract the attention of the venture community, specifically those that target the sizable small-business market.

The latest example is OneCore.com’s $30 million third round financing that closed in the middle of this month. Century Capital Management led the financing that included first-time commitments from PaineWebber Group Inc., Merrill Lynch and Onex Ventures, said Jack Littman-Quinn, president of OneCore.

Additional capital came from The Burtzloff Family Trust and existing investor @Ventures.

Proceeds from the investment will be funneled into three main business areas, including integrating additional financial services for customers, increased marketing and establishing additional strategic partnerships.

OneCore’s service target small to midsize businesses that have fewer than 200 employees. The company integrates typical business programs that businesses use every day – cash management, payroll, leasing, credit card and retirement planning.

“We take a standard service and add value to that,” Littman-Quinn said. “The integrated service becomes one relationship, so the information is easy to manage.”

Another service the company offers is an electronic financial officer, which tracks operations on 30-day intervals to predict financial requirements for customers. Included in this is a service that alerts customers if there are projections of cash shortfalls.

OneCore earns revenue on all these transaction services as well as receiving referral fees from the various service providers that participate. In addition, the company is a registered broker-dealer, so some money is made on funds under management.

Littman-Quinn said the company is tracking toward an initial public offering following this deal, but he said there is a chance the company would add strategic capital in the meantime.