As we predicted in April (CI No 3,151) CyberCash Inc has received a much-needed cash injection. The Reston, Virginia secure internet transaction specialist, has raised $15m in equity capital through a private placement of convertible preferred stock to two private equity funds. The company believes that the cash infusion, coupled with spending controls it has recently implemented, should carry it through to profitability. Last month, CyberCash reported a second-quarter net loss of $6.3m on revenue of only $812,000. The company has said the key to becoming profitable is to sign contracts for its internet payment services with major financial institutions, as opposed to other technology companies.
