First Payment Service Designed Specifically for the Collection and Management of Group Finances Grew 80% in July: Highland Capital Partners Added to Roster of Blue Chip Investors
Palo Alto, CA - August 13, 2010 - WePay, an online payment service that makes it easy for groups to collect and manage money online, today announced that it has secured $7.5M in Series B funding. Led by Highland Capital Partners with participation from existing investor August Capital, the latest round of financing will be used to expand marketing efforts, build-out operations and engineering infrastructure and address rapidly growing consumer demand.
The Series B round follows an A round of capital in December of 2009 that included August Capital, PayPal founder Max Levchin, renowned angel investor Ron Conway, YouTube cofounder Steve Chen, and former Intuit CTO and CFO Eric Dunn. WePay has grown dramatically since its April 2010 public launch, with payment volume increasing 80 percent in the month of July.
“WePay is off to an outstanding start with an exceptionally high value proposition that strongly resonates for groups and organizations seeking an easy and reliable solution for collecting payments online,” said Peter Bell, general partner, Highland Capital Partners, who will join the WePay board of directors. “Building on their accelerating growth, we believe they can become a market leader and household name with millions of customers.”
Founded in 2008 and released in public beta earlier this year, WePay is the first online payment service designed specifically for the collection and management of group finances. WePay is the only service that gives users the ability to establish a unique, FDIC-insured account for each group they want to manage. This approach allows for easier and more flexible management of group finances, which could include common collections efforts such as professional and collegiate clubs and organizations, sports fantasy leagues, fundraisers, baby showers, class reunions, roommates, event tickets and homeowners’ association fees.
“Collecting money from groups of individuals is a hassle that nearly everyone has had to deal with at some point in their lives. We built WePay to make this process more convenient and transparent,” said Bill Clerico, cofounder and CEO, WePay. “After several months of both steady growth and exceptional user engagement, this latest round of financing will allow us to substantially expand our operations and engineering team, dramatically increase marketing efforts and continue to build our user base.”
WePay’s model for online collection and management of group funds makes it easy to keep funds separate and to avoid mixing group finances with personal finances. It also lends an easy way for any person to establish multiple accounts for completely different collection and payment purposes, such as one account for a bachelor party and another for a vacation fund. WePay derives revenue from either a 3.5 percent transaction fee or a 50 cent transaction fee, depending on whether group members pay with a bank account or credit card.
“WePay is the first service I’ve come across that has actually made collecting money from a group of people manageable,” said WePay customer Daniel Garcia. “I recently used the service for my 10-year high school reunion. WePay automated and kept me up to date throughout the entire process, from setting aside a dedicated group account to notifying me of deposits.”