Wells Fargo Increases Financial Commitment to High-Tech Industry
PALO ALTO, Calif.--(BUSINESS WIRE)--Wells Fargo & Company (NYSE:WFC) announced it has provided financing for two Silicon Valley high-tech companies through its Growth Technology and Life Sciences Group, which focuses on high-growth startups funded by venture capital. The deals – terms of which were not disclosed – are part of a new Commercial Banking focus for Wells Fargo on the technology industry and venture capital firms nationwide.
“We’re investing billions in technology and venture banking, because it’s the right thing to do for our environment, our economy, and our communities.”
Wells Fargo provided a line of credit to Nexxo Financial to fund the company’s fluctuating working capital needs. Nexxo Financial — based in San Bruno, Calif. – is a money remittance company that provides its customers a fast, convenient, and low-cost means of sending money to Latin America and Mexico via ATM-style, self-serve kiosks. The company’s machines are located primarily in Hispanic grocers, “farmacias,” and convenience stores throughout California, Texas, and several other states.
“Nexxo saw triple digit growth last year, and because Nexxo offers its customers the ability to send money instantly, our working capital needs can be higher on weekends and holidays than other days of the week,” said Nexxo Financial CFO Nick Colburn. “The Wells Fargo team tailored a line of credit product for us that matched this need, helping us to cost-effectively smooth out our cash position."
Enovix Corp., formally known as microAzure Corp., is a battery cell company based in Fremont, Calif., that makes Silicon Lithium-ion batteries with up to 100 percent more energy in the same volume than traditional Lithium-Polymer batteries. The company – which is venture-backed by DCM, Sofinnova Ventures, and Trinity Ventures – will use the Wells Fargo financing for general corporate purposes, including growth.
“DCM was glad to partner with Wells Fargo in funding Enovix,” said Peter Moran, general partner of DCM. “With this increased access to capital, Enovix looks to introduce its groundbreaking power storage cells for many consumer electronic applications.”
“We’re expanding our business with technology companies in Southern California, winning new business across the country, and looking for opportunities in mobile communications, software, clean technology, and all technology services,” said John Adams, who heads Wells Fargo’s Technology and Venture Banking Group, which also includes the Growth Technology and Life Sciences Group. “We’re investing billions in technology and venture banking, because it’s the right thing to do for our environment, our economy, and our communities.”
The Technology and Venture Banking Group at Wells Fargo, based in the heart of Silicon Valley, was launched in February 2009 to serve a broad range of financial services for technology, clean technology, software, mobile, life sciences, and venture capital companies nationwide.
About Wells Fargo
Wells Fargo & Company is a diversified financial services company with $1.2 trillion in assets, providing banking, insurance, investments, mortgage and consumer and commercial finance through more than 10,000 stores and 12,000 ATMs and the internet (wellsfargo.com) across North America and internationally.
Posted: May 19, 2010