September 01, 2010
by Joshua Reich

Funding & Next Steps

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Today, I’m pleased to announce that we’ve closed our Series A investment round. We’re thrilled to have put together a syndicate of investors who will help us take BankSimple from idea to reality. Leading the round is First Round Capital, IA Ventures, and Village Ventures. We’d also like to thank Jerry Neumann, SV Angel, Nauiokas Park, and everyone else who has supported us through this process. We’ll be announcing the angel investors involved in this round once we’ve closed with them all.

This financing is a critical step towards taking BankSimple live. With money in the bank (no pun intended), we can finalize launch plans with our partner financial institutions. We’ve been carefully examining the operations of these potential partners to ensure that they’re financially sound and technologically agile. With this process coming to a close, we look forward to announcing our premier financial institution partners soon.

Our next step is to get our first cards issued. The card networks don’t issue new cards during November and December so that they can manage the rush on holiday gift cards. Assuming we can get our cards issued before this blackout period, we’d like to do a “friends and family” test later this year. That test will help us iron out any technical issues with our partner integrations and provide us with essential feedback.

Once we’re satisfied that our initial service is stable and secure, we’ll begin bringing on customers who signed up for an invitation (in order of invite request date, of course). To encourage people to flex our systems early on, we’ll be rewarding active customers with additional invites.

We expect our service to remain invite-only for the immediate future. This invite system allows us to control quality and costs. Our goal is nothing less than stellar customer service, and to achieve this goal we need to regulate the number of customers as we train and staff our support team. Once we’re sure we can provide the best possible experience to everyone, we’ll drop the invitation requirement.

In the meantime, we love hearing from you. While our development team is working hard on preparing our product for launch, your emails and input can help shape our roadmap. We have exciting plans to address many of the complexities that you face from your current banks. We’ll continue to share more of our plans as we approach launch.