Atlanta-based person-to-person money transfer start-up Ikobo is to discontinue its operations after failing to attract a new round of investment financing.
The company, which was established in 2001 and based its business on the issue of reloadable Visa prepaid cards to recipients, says it will cease operations on 13 November. After this date, all outstanding cards in circulation will be deactivated and any remaining cash refunded to the sender.
Investors in the company included Total Technology Ventures, Council Ventures and Greenhill SAVP, who pumped in up to $13 million from inception. The last funding round scooped $4 million in Series C financing back in October 2006.
At the time, Jeffrey McConnell, President and CEO of iKobo, said: "I've been in this industry since the mid-80's with American Express, Western Union and Moneygram and I've never been more excited about an opportunity."