WePay, an online payment start-up that helps groups of people to collect, manage and spend money, has raised $7.5 million in a series b funding round.
Led by Highland Capital Partners with participation from existing investor August Capital, the round will be used for marketing, build out operations and engineering infrastructure and meeting customer demand.
Set up by two recent college graduates, WePay raised $1.65 million in venture financing from August Capital in December and has an impressive roster of angel investors include PayPal founder Max Levchin, Ron Conway - an early investor in Google, Facebook and Twitter - and Eric Dunn, a former CTO and CFO of Intuit.
The system was publicly launched in April as the first online payment service designed specifically for the collection and management of group finances with users creating free FDIC-insured accounts that can be "shared" with others.
From these accounts, users can send electronic bills (which can be paid with bank accounts or credit cards) and spend funds with a WePay Visa pre-paid card, paper cheques, or electronic transfers. The firm takes a 3.5% or 50 cent cut from each transaction depending on the type.
Bill Clerico, co-founder and CEO, WePay, says: "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."