Digital Insight Will Receive $6 Million in Funding for Internet Banking

Menlo Ventures in Menlo Park has agreed to provide $6 million in funding to Digital Insight to help the Camarillo company continue its growth in the Internet banking market.

With the funding from Menlo Ventures, Digital Insight plans to create a backup data center, invest in research and development and continue recruiting seasoned personnel who are experienced in transforming small companies into large corporations.

“Menlo Ventures’ philosophy is to invest in the leading companies in emerging markets,” said John Jarve, general partner and managing director of Menlo Ventures. “Digital Insight is the market leader in Internet banking, and we are convinced they are positioned to remain the leader.”

Digital Insight, founded in July 1995, derives a portion of its revenues from developing and hosting financial institutions’ Web sites. It also is compensated with a monthly fee for every user that conducts financial transactions using the AXIS Home Banking System.

With 38 institutions now conducting transactions via the AXIS system, and another 70 institutions committed to offering it to their customers, Digital Insight expects to increase its penetration of the Internet banking market.

Menlo Ventures is a private venture capital partnership providing long-term capital and management support to early stage and emerging growth companies. During the past 20 years, Menlo Ventures has invested more than $460 million in the areas of biotechnology, medical devices, health-care services, computer software, hardware, networking, communications and the Internet.