In Brief: MoneyStar Raises $20M of Venture Capital

MoneyStar, a provider of software that helps companies distribute mutual fund and other investment products, has raised $20 million in a third round of venture funding.

New investors are Century Capital Management, Deutsche Banc Alex. Brown, the Texas Growth Fund, and Prime New Ventures. They join GE Financial Assurance, Austin Ventures, Applied Technologies, Phillips Smith Retail, AM Fund, and Solstice Capital as investors.

The financing came after a $9.75 million capital infusion in June 1998.

"MoneyStar is a clear market leader in developing solutions to enable the transfer of information from financial product companies to retail institutions and their clients," said James Marks, electronic commerce analyst at Deutsche Banc Alex. Brown.

MoneyStar has two main products. The first, MoneyStar Financial Network, is a secure extranet on which mutual fund companies and other financial product suppliers can post information about their offerings. Brokers and financial advisers can tap this information when advising clients. Product suppliers pay an annual fee that starts at $50,000 to participate; brokers and advisers can gain access to the network for free.

The second product, LifeScript, is software that helps brokers and financial advisers devise financial plans for customers based on specific life events, like a child's education. The software also links with the MoneyStar Financial Network to identify products that will fit investors' goals. The price starts at $2,000 per broker.