TrueCommerce: Making Electronic Document Compliance Affordable for Smaller Companies
TrueCommerce has helped make the once painful process of electronic commerce seamless and easy to use, helping small to medium-sized enterprises (SMEs) effectively do business with the big boys. The company was formed in 1995 when it became apparent to the founders that SMEs were being pressured by their larger customers to become compliant with electronic data interchange (EDI) initiatives.
EDI is an electronic standard by which companies exchange documents such as invoices and purchase orders. “Unlike an electronic fax, which is nothing more than an image, the EDI-compliant document is sent as electronic text that the computer on the receiving end can ‘read’ and process.
And unlike email, the text is formatted in very specific ways so the computer can interpret it properly,” explains George McKee III, president and CEO of Wexford-based TrueCommerce, a BFTP alumni company. The company specializes in solutions that make EDI compliance painless by providing products and services that are simple to use, robust and affordable.
“We found that SMEs were resisting compliance because of prohibitive costs, daunting technology and changes to existing business practices associated with becoming EDI-enabled,” says McKee. Many SMEs were losing valued trading partners in the process. “Needless to say, there was a clear need for an easy-to-use, affordable and effective EDI solution that catered to the needs of SMEs.”
An Investment in Possibilities
Even though the demand was clear, TrueCommerce reached a point in its growth where it needed an influx of capital. “But the founders looked for a partner who could provide more than just money,” McKee says. “InnovationWorks [Ben Franklin Technology Partner of Southwestern Pennsylvania] rose to the top of the list because they also provide advice and guidance to inexperienced entrepreneurs, and access to resources that are otherwise difficult to find.”
Ben Franklin’s initial investment of $300,000 was quickly converted into Class A Common Stock. This investment, McKee says, was crucial to the success of the company.
“At that stage of our life cycle, we would not have qualified for conventional financing and had not demonstrated enough commercial traction to attract traditional venture capital,” McKee says. “BFTP was willing to take a risk at a time when most other sources of capital were not. It is safe to say that TrueCommerce would not be on its current growth trajectory without the commitment of BFTP.”
Positive Traction and Steady Growth
The company’s growth trajectory includes increased customer count, software revenue and network revenue of 300 percent. “We grew from five employees to more than 70, and currently have 10 open positions to fill. We have become both profitable and cash flow positive,” he says.
To fuel company growth, McKee says TrueCommerce will be launching the next generation of their technology platform, which will allow them to do things they’ve never done before. “The next few years will be very exciting here at TrueCommerce as we dramatically change the mid-market EDI landscape.”
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