Yahoo co-founder Yang leads $4.8 million investment round in Openbucks
18 July 2012 | 1396 views | 0
Today Openbucks), the "Gift Card Payment Network," announces the closing of a $4.8 million Series A funding round led by Yahoo co-founder, Jerry Yang, with the participation of Terry Semel, Greycroft Partners, BV Capital, Clearstone Ventures, Morado Ventures, Novel TMT Ventures, Inspiration Ventures, CrunchFund, SV Angel and TiE Angels.
The investment will support Openbucks' strategic growth plans, including the continued development of its acceptance network.
The Openbucks Gift Card Payment Network enables consumers who don't have credit cards or a bank account, or who prefer to keep their financial information private, to pay for online goods and services using the gift cards of major retailers. The regular gift cards of Subway, CVS Pharmacy, Burger King, Shell, Circle-K and CITGO are now accepted through the Openbucks Network as a form of payment at thousands of online checkouts. This provides millions of unbanked and underbanked consumers, including teenagers, with a free, safe and convenient way to pay online using trusted brands.
"Consumers can obtain a gift card from one of our partner brands at over 100,000 locations nationwide, and use it to pay online in a way that is fast and safe, without any of the fees they would incur with the other prepaid cards currently available on the market. We also generate a mutually beneficial exchange of foot traffic between online and offline retailers," said Marc Rochman, founder and CEO of Openbucks. "We are excited to have the support of a well-connected and relevant group of investors composed of successful entrepreneurs, industry leaders and prominent VC funds."
"The Openbucks Gift Card Payment Network taps into a whole new market of consumers that either by choice or due to limited resources may not have been able to previously buy goods online," said Jerry Yang. "Openbucks stands at the forefront of the future of online payments as it provides a simple solution to the twenty-five percent of US households and most US teens who have no or very limited access to credit cards along with the many consumers that are leery of providing their financial information online."
"We transform analog money into digital money and have seen a fantastic adoption in the past 10 months since our launch at TechCrunch Disrupt less than a year ago. We are now preparing to scale up the network and bring millions of new customers to online commerce," added Geva Solomonovich, Openbucks CTO. "Openbucks builds a natural bridge between cash and electronic payments, connecting online and offline consumer activity."