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BlueCava, a credit bureau for devices conducting business online, has closed a $5 million first round of funding led by billionaire Mark Cuban and entrepreneur Tim Headington. The company told VentureBeat it expects to conduct a second round as soon as April.
BlueCava is used by companies doing business online to identify the individual “fingerprint” of any desktop or mobile device being used in a web transaction. This snapshot then provides businesses with the device’s IP address, cookies, browser and any credit information it can find about past historical activities, thereby lowering the risk of possible fraud during online buying or selling.
Blue Cava CEO David Norris said the firm has a clear outline for where it will put the new cash first.
“We’ll be using the funding to accelerate growth on the sales and marketing front as well as on the development side,” said Norris. “This funding will help us accelerate our growth, which is already moving so rapidly. [These] certainly are exciting times for us.”
BlueCava’s technology works with PCs, smartphones, video game consoles and set-top boxes located anywhere in the world. This lets customers such as banks, payment processors, airlines, social networks, online gambling sites and dating sites detect, identify and track devices within their own environments.
With an oversubscription rate of more than 500 percent during its first round of funding, clearly the price is right for many investors eyeing the Orange County-based firm.
Right now BlueCava charges 1/100th of a cent per device transaction and 1/10th of a cent per device reputation transaction, a reduction in pricing the company said is 500 times less than historical industry averages. It may also make it attractive to even the smallest of companies doing business online.
Norris predicted that given the amount of investors clamoring to participate in this round’s cycle, BlueCava will “probably have more opportunities going forward.” That anticipated spike in interest has the firm poised to begin a second round of open funding over the next six to nine months, he told VentureBeat.
Cuban is a well-known fixture in both the investing and celebrity worlds as a participant in multiple reality shows and sitcoms as well as the chairman of HDTV cable network HD.net, owner of the National Basketball Association’s Dallas Mavericks and owner of Landmark Theatres.
As part of the $5 million investment, Cuban will now join BlueCava’s board of directors. Hotelier and film producer Headington is founder and owner of privately-held oil and gas firm Headington Oil.
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