MANAMA, 31 May 2006 — Venture Capital Bank (VCBank) has successfully completed a transaction, acquiring a controlling stake in Saudi-based IT application solution provider House of Development (HOD) in what is considered an important step in the development of venture capital activities in the region, which have so far remained quite limited.
HOD claims to specialize in providing document security solutions using a “unique Electronic Certification & Authentication (EC&A)” solution, which currently no other existing technologies address this market segment, and the only competition to HOD solution is the old and cumbersome method of a manual process. HOD’s solution has many applications for different sectors, such as the banking industry, e-government, etc.
The move is in line with VCBank’s objective of supporting entrepreneurial small and medium enterprises, as the growth capital it will provide will allow HOD to commercialize its products and services worldwide. “At Venture Capital Bank, we’re constantly on the lookout for rapidly growing companies which have the potential to become major players, but lack the necessary resources for growth and expansion. After conducting the commercial, legal and financial aspects, VC Bank decided to invest in HOD to help it go global,” said Sharif Monfaradi, chief investment officer, private equity and financial advisory, VCBank.
“HOD helps to combat the growing dangers of document fraud and identity thefts through its unique patented technologies. We see huge potential for the company in this market as Internet-based transactions become more and more vital to businesses around the world,” Monfaradi added.
HOD’s products are already used in the region. In October 2003, it was contracted by the Council of the Saudi Chambers of Commerce & Industry to develop a secure solution for its member chambers Kingdom-wide.
