By Allan Maurer

ARLINGTON, VA—Steven L. Woda, founder of buySAFE Inc., got burned after buying a handheld computer from an online merchant. He never received the product and the seller disappeared. “There has got to be a better way,” he thought, and used his experience in the surety bond industry to launch Arlington-based buySAFE. The company has drawn down $2.7 million of a $5.12 million D round, according to PE Hub, which cites a regulatory filing.

Return investors in the D round include Core Capital and Grotech Capital.

The company offers merchants who pass a rigorous inspection process a buySAFE seal for their e-commerce sites. If the site carries the seal, a buyer’s purchases can be covered by a bond guarantee of up to $25,000 from buySAFE and its bonding partners, Liberty Mutual, Travelers and ACE USA.

Since its founding in 2003, buySAFE has bonded more than 15,000,000 online transactions.

The company won the Northern Virginia Technology Council’s “2005 Hottest Venture Capital Deal” Award. This award goes to the company that offers the most all-around potential for return-on-investment—a strong management team, great buzz and a winning product or service.

buySAFE received a funding round of $13.25 million in early 2005 led by Grotech Capital and Core Capital Partners. First-round funders Hartford Ventures and Thomas Rutherfoord, Inc. also invested in that round.

On the Web: www.buysafe.com

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