With social networking having become a critical component of the marketing strategy for most businesses, those in heavily regulated industries must exercise caution to remain legally compliant. For example, businesses providing financial services are governed by some especially detailed rules about advertising and promotion. Many of them have turned to Socialware, a software company in Austin, Texas, which started in 2008.
Socialware offers a product that keeps financial companies from running afoul of government regulations in the use of social networking tools. With $7,000,000 of new institutional capital, Socialware intends to increase its research and development plus expand the sales and customer service teams. The company recently moved from its original location occupying 2,400 square feet to an 11,000 square foot facility.
Socialware has had three rounds of fundraising that now total more than $14,000,000. The company has grown from 15 employees at the start of 2011 to around 40 at the end of the summer.
With more than 100 customers, including New York Life, Morgan Stanley, and Cambridge Investments, Socialware reports that it has tripled in size within one year. Social networking has definitely captured the attention of companies in the financial services industry. Socialware’s product is the market leader in helping financial companies maintain compliance with regulatory rules regarding online presence.
With a rising number of financial firms adopting social marketing as a promotional method, Socialware expects greater demand for its solutions that address required controls.