DAVO Receives Financing From Maine Technology Institute
October 30, 2014
DAVO Technologies, LLC a Maine-based technology company has been awarded a Maine Technology Institute Development Loan to assist in the final development of their DAVO Sales Tax comprehensive sales tax solution for merchants. DAVO expects to become a key player in the developing payment technology space in Maine based on the commercialization of its DAVO Sales Tax product. The company will continue to strengthen its working relationship with the Maine Revenue Services as well as with merchants using the DAVO Sales Tax system.
The Problem: Sales Tax
“Sales tax compliance is a major burden for many businesses, particularly small to mid-sized merchants. It is a responsibility from which they gain no benefit, yet have all the liability if they make a mistake,” said Owen Brown, CEO and co-founder of DAVO Technologies. States also experience suboptimal sales tax collection results because of their reliance on merchant compliance. DAVO Sales Tax can provide states with the tools to facilitate the seamless flow of sales tax from the consumer to the State with little or no intercession from the merchant. DAVO Sales Tax automated process is the solution for both merchants and the States.
The Solution: DAVO Sales Tax
DAVO Sales Tax is a simple, streamlined process that automatically collects, files and pays sales tax for merchants. DAVO’s unique patented process collects sales tax revenue daily and automatically files and pays the sales tax revenue directly to the state. By removing all the friction points associated with sales tax compliance DAVO Sales Tax eliminates a burden for merchants and allows merchants to focus on the profitable aspects of their business. According to David Joseph, DAVO’s Chairman and co-founder, “Our goal is to offer an inexpensive simplified process to protect the merchant and the state, mitigating risk for both.”
The Maine Technology Institute Development Loan will enable DAVO to complete their software build and offer an end-to-end solution for sales tax collection. “Our simplified solution can help achieve greater sales tax compliance and increased revenue for the State, while at the same time removing the burden of filing and paying from the merchant. We believe this solution is a win-win for all involved,” says Joseph.
Brian Whitney, acting Director of the Maine Technology Institute said “DAVO Technologies identified a problem for both sides of a transaction and created a solution that solves the issues for both the merchant and the state. MTI is looking forward to the successful role out of DAVOTAX, and to the resulting creation of new jobs and opportunities within Maine. “DAVO Technologies is one of several firms in the evolving payment processing technology space that MTI has invested in over the last few years. Some others include CASHSTAR and MuniciPay, both of which have developed successful, growing businesses in Maine.
About DAVO Technologies LLC
DAVO Technologies, LLC has pioneered the development of payment processes that remove friction points between payees and payers using their patented technology, and the card payments networks. DAVO is currently developing a suite of proprietary products that reduce traditional 30 day payment cycles to 24 hours. DAVO’s current product offerings are focused on sales tax payments for small to mid-sized merchants, franchise royalty and advertisement fees and merchant utility payments.
About Maine Technology Institute
The Maine Technology Institute (MTI) is a publicly-funded, industry-led technology venture fund. MTI invests in entrepreneurs and companies engaged in developing innovative technology products, services and processes in seven technology sectors. MTI awards funds in the form of grants and loans to Maine entrepreneurs and companies on a competitive basis. In addition, MTI offers support for startup and growing technology companies and connects these companies to other resources to help them grow and succeed. Started in 1999, MTI has invested more than $180 million in Maine through these funds and through the management of several bond funds that have strengthened Maine’s innovation economy. For information about MTI, its funding programs, frequency of awards, qualifications, general terms of awards, and key application dates, please, visit our website at www.mainetechnology.org