Ohio Venture - OVA Review Newsletter
News from the Ohio Venture Association meeting on June 9, 2017


2016 Venture of the Year Award:
Cardinal Commerce

Cardinal Commerce, an e-commerce solution provider purchased recently by Visa, was OVA's Venture of the Year, succeeding last year's winner, Explorys.

Cardinal, founded in 1999, has emerged as the global leader in the e-commerce payment authentication sector, which has grown more vital as online transaction fraud has mounted. Last year, it processed more than one billion transactions for its customers, with each transaction averaging about $100.

A new generation of chip-enabled credit cards has greatly reduced the incidence of fraud when cards are used in person. So fraud, following the path of least resistance, has exploded in so-called "card-not-present" transactions, generally performed online, where protecting against fraud is far trickier. That has created an opportunity for Cardinal, which helps merchants increase their rate of approved transactions and card issuers protect against fraudulent transactions.

But the challenge will only grow larger with the explosion of internet-enabled devices. "It took VISA 50 years to get to three billion cards," said Cardinal's co-founder and current CEO, Tim Sherwin. "By 2020 there are going to be 30-50 billion internet-connected devices. So, that's people making transactions from wearables, video game consoles and devices such as Amazon Echo."

Despite its purchase by VISA, Cardinal—which also does business with Master Card, American Express and Discover—will retain its brand and continue to operate from Northeast Ohio, where the company has built an elaborate campus with a Silicon Valley feel.

"This is truly a Cleveland story," said Jonathan Dick of Primus Capital, a major investor in the company. Founder Mike Keresman, a former CFO of Steris, added that his team couldn't have done it without contributions from the region, recalling how some early suppliers were paid in company options.

To be considered for the venture of the year award, an organization must have either raised a significant round of professional capital (professional angel, VC or private equity) in that year or had a successful exit, either through a buyout or initial public offering. This year's award was sponsored by Cohen & Co., Primus and Faye Sharp LLP.

Webcast from the Meeting:

Click on the image below to view the video.

Video Webcast from Recent Meeting

Webcasts produced by Tom Kondilas.

OVA's Video Archive is Online:

OVA is pleased to offer an archive of program videos to its website. You'll find the full video record of most OVA formal programs since 2008 at www.ohioventure.org/events/video-archives/.

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