BancBox, a payment services platform similar to Stripe, has a platform allowing developers to build a lot of different payment services. Earlier this year it launched BancBox Crowd (now dubbed BancBox Invest), an escrow service aimed at crowdfunding portals that operate on equity, debt or revenue share models. It’s now announcing that 18 crowdInvesting platforms are using the BancBox Invest API. In addition it says $4 million has been processed on behalf of partner platforms.
I’d love to tell you about competitors for this crowdfunding API, but it appears not to have any right now, which could be an opportunity for a bunch of new startups.
The companies using BancBox Invest now include 99 Funding, Angel RoundUp, FilmFunder, FlashFunders, SeedInvest and SparkMarket, among others.
They have also released some interesting data about its usage: The average investor funding is around $15,000 and the average escrow size is $250,000.
BancBox Invest claims to be the only cloud-based, automated, independent escrow solution that ensures that CrowdInvesting portals remain in compliance with FINCEN, FINRA and SEC requirements, specifically Rule 15c2-4 which covers the transmission or maintenance of payments received in connection with under writings.
BancBox was created in 2011 but previously, co-founders Goyle, Praveer Kumar, and Bill Wilson launched the now well-known National Payment Network (NPN), which had investors like Foundation, Floodgate, Baseline Ventures, Harrison Metal, and Founder Collective.
It manages $100 million in consumer deposits daily in nearly 200,000 individual accounts. Its transaction volume has increased 100 percent to nearly $2 billion annually.