Founded in 2006, HiConversion is a disruptive, patented conversion rate optimization (CRO) solution that allows e-commerce retailers to convert a higher percentage of existing web traffic into online sales. Using statistical analysis and mathematical modeling, HiConversion allows e-tailers to quickly increase page conversion rates in real-time, and, as a result, increase revenues and decrease online marketing costs.

Investment Date: November 23, 2010; August 1, 2012; February 7, 2014
Type of Investment: Equity Financing
Board Representation: 2 Board Seats
Funding Need: LB Merchant has made three successive investments in HiConversion. Each round of funding has enabled the company to enhance its product offering and expand sales and marketing operations to support its rapid growth.

Investment Overview:

  • Market Need: 20% of website visitors are ready to make a purchase, but only 2% actually make a purchase. E-commerce retailers need to focus on converting existing traffic, but other CRO solutions are expensive and time-consuming.
  • Product Viability: A patented, sophisticated technology that has been implemented by major e-commerce retailers.

Investment Highlights:

  • Experienced management
  • Headed by seasoned entrepreneur Dr. Zee Aganovic, who sold his prior companies to Microsoft and Ricoh
  • Software-as-a-service business model
  • Recurring revenue streams via strategic partnerships and direct sales
  • Board representation
  • Littlebanc holds two seats on HiConversion's board of directors
  • Clear exit
  • Sell to large strategic buyer

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