Wesabe’s “online Quicken” product apparently caught the eye of Union Square Venture’s Fred Wilson, because he’s just written a check to lead a $4 million Series A round. This follows a seed round of $700,000 led by O’Reilly AlphaTech Ventures (OATV) just a couple of months ago. OATV also participated in this round. Brad Burnham from Union Square Ventures has joined the board of directors.
Wesabe is differentiating itself from Quicken in three ways. First, it’s only online. Second, they’ve added tagging to transactions that are shared among users – when enough users tag a specific merchant, that tag is automatically added as a suggestion to your transaction. Finally, Wesabe is security-focused. Your third party bank and credit card account credentials are not stored on Wesabe’s servers – instead they are downloaded to your personal computer. Hackers can’t access your account credentials by breaking into Wesabe’s servers.
There are other startups generally in this space, but the real heavyweight (we hear) is Mint, which has guarded the specifics of its service closely. Those who’ve seen the demo, though, say it’s a winner.