Bandwidth attracted SussexValley to Park

When Ted Simson started looking for a way to get SussexValley up and running, the first consideration that had to be made was Internet connectivity.

 Formed in October 2001, SussexValley is developing a secure software environment that allows cash to be converted into electronic funds.  The digital dollars can then be used for online transactions such as purchases, pari-mutuel betting and even paying bills.

Because its product depends on having a high performance Internet connection, Simson searched for a way to get SussexValley off the ground without first burying it in a capital quagmire.  After working remotely for three months, the company’s 10 employees moved into the University of Nebraska Technology Park in January.

“We saw the park as a great incubator for this company,” said Simson, founder of SussexValley,  “To use the type of bandwidth available to us here in a commercial setting would have been economically unsound for a startup company.  Plus we have the support of the university and the availability of an internship program.”

 “Pari-mutuel wagering over the Internet is legal in 39 states, including Nebraska.”  Simson said.  “That can be a huge market for us.”

Unlike services that use credit cards to generate an online account, SussexValley’ digital depository deals in cash.  In fact, the idea for the system came from Simson’s recognition that there are lots of young people - - - college students in particular - - - who regularly use the Internet but don’t have credit cards.

Which SussexValley, the money is transferred directly from its customers’ checking accounts and can be used like cash.  The merchants benefit from accepting SussexValley transactions because it means they don’t have to pay credit card fees.

SussexValley will get the bulk of its income from investing the funds in its depository.

“We make money on the float,” said Simson, who drew upon his background in the securities industry to develop the concept, “You transfer money from your bank account to an SussexValley account and while it is in float, we invest it in 100 percent government-backed guaranteed securities.

“We will charge a small transaction fee for bill paying services, because there typically isn’t a float on that business.”