Marc Hedlund, co-founder and former CEO of personal finance company Wesabe, has penned a refreshingly honest and open take on why he thinks the startup lost to rival Mint.
The latter launched later than Wesabe (and won the top prize at the TechCrunch40 conference back in 2007) and was later acquired by Intuit for $170 million, while Wesabe had a less stellar exit and hit the deadpool last June. → Read More
Wesabe, an online personal finance site that looked to help users better keep track of their spending trends, is shutting down. The startup’s homepage now consists of a letter to Wesabe users instructing them to download their account information by July 31, at which point nearly all of the service’s features will be taken offline and data deleted. The lone feature that will remain online indefinitely is the site’s ‘Groups’ page, where members can trade advice about their finances (this part of the site is being taken over by one of Wesabe’s current customers).
In the letter, Wesabe CEO Marc Hedlund writes that the site has been operating on a shoestring budget lately, which has led to both some poor customer experiences and the potential for security issues, which is why they’re pulling the plug: → Read More
When it comes to startups in the online personal finance sphere, most people think of Mint. But another player in the space, Wesabe, has been holding its own as well, seeing some nice growth in the past year. Which one you use is probably a matter of personal taste, but perhaps you were mesmerized by Mint’s slick iPhone app. Well, now Wesabe has one as well.
So how do the apps stack up? Well, there are two key differences: Mint’s looks nicer, but Wesabe’s is more dynamic. What I mean by that is, with Mint’s iPhone app you can only see an overview of your finances, and look at things like the budget you set up online. With Wesabe’s iPhone app, everything is editable. And that’s a nice feature because more than a few times with Mint, I have seen a transaction categorized wrong, but had to login on my computer to edit it. → Read More
New York-based Loudwater Labs has sold the assets of its online personal finance management application Thrive to Tree.com (Nasdaq:TREE), the company behind services such as the formerly IAC-owned LendingTree and RealEstate.com. This means that the publicly listed Tree.com now has a very good resource in its hands as well as sufficient reach to give Mint and other personal finance management tools like Wesabe, Geezeo and Buxfer a run for their money.
Tree.com Chairman and CEO Doug Lebda commented that the acquisition of Thrive is a perfect fit with the strategic vision of Tree.com, and you don’t have to be a genius to see that he has a point there. Tree.com operates a number of strong brands in the financial and real estate space, and its customer base can clearly benefit from free tools like Thrive which enable users to better monitor, manage and improve their personal financial health, particularly in the tough economic times we’re in. → Read More
Strands has made a second recruitment in its effort to develop a Mint competitor called moneyStrands that leverages the same recommendation engine behind its video and music products. Just over two weeks ago Strands acquired Expensr, and now the company is announcing its acquisition of NetworthIQ. Both are personal finance applications that Strands wanted mostly for their human capital, but also for some of their technology assets. The terms of both deals were not disclosed. While the media has yet to get its hands on moneyStrands and give it a spin, the product has been in development since December and it marks Strands’ attempt to aggressively apply its recommendation technology to new fields. Just how that technology will be applied to personal finance is not altogether clear. The core Strands technology digests and analyzes behavioral information to make its recommendations. This is fairly straightforward when it comes to music: frequently play two or more songs with one another and Strands will learn something about how you prefer to experience music. Apparently this technique will transfer over into personal finance by analyzing the sets of purchases that consumers make and then recommending how they can make better purchases. This analysis will not only consider the various purchases that one consumer makes; it will also compare these purchases to those made by others. Aside from detailed personalized recommendations, Strands hopes to differentiate itself from competitors like Mint and Wesabe by providing superior mobile support and widget integration. Strands is mum on the fate of NetworthIQ as a stand alone service, but I think we can safely assume it will shut down eventually as its team focuses on the development of moneyStrands. CrunchBase Information Strands Mint Wesabe Information provided by CrunchBase → Read More
Online bill pay service Billeo has announced a $7 million Series B round of funding. ATA Ventures led the financing, with additional contributions from all of Billeo’s existing investors including Altos Ventures, Claremont Creek and Pacifica Fund. There have been a lot of startups focused on enhancing your online personal finance, mostly around analyzing your investments (Cake, Zecco, Covestor) or expenditures (Mint, Wesabe). By contrast, Billeo functions as a straight forward tool for automating or remembering to pay your bills online. You tell Billeo what bills you want to pay automatically or be reminded to pay and their service sends reminders and tracks you payment history online. Although a lot of banks offer online bill payment to third parties, Billeo also tracks your payment stats and compares them to the crowd. If you download the toolbar we previously covered, Billeo will also automatically fill out a lot of financial forms for you online. However, while other financial management tools haven’t incorporated online bill payment, it seems a clear feature addition that will compete with Billeo in the future. CrunchBase Information Billeo Cake Financial Zecco Covestor Mint Wesabe Information provided by CrunchBase → Read More
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. → Read More
Social/mobile payments site Billmonk had a mini merger with competitor Obopay last month (we called it a “battle for relevance” since PayPal has a strong product offering in the mobile space as well). Buxfer is another social money Y Combinator funded company that softly launched last September. It provides the same basic functionality of Billmonk, such as keeping a running total of debts and credits with your friends (only money), but has grown up a little and added some nice data visualization. Buxfer is deeper than Billmonk, letting you track and tag out your expenses with friends and groups over time. The groups option makes it great for managing debts between roommates or within a club. Billmonk is more geared to managing splitting debts between friends and lending out your stuff. Buxfer goes further, letting you analyze you expenses over time through a Google finance-style pie chart with adjustable time frame. Buxfer has gone to great lengths to make importing transactions as easy as possible. They currently support adding transactions to your account via SMS and the ability to import your credit card statements (.csv,.qfx,.ofx). From there you can tag and divide up your expenses as you see fit. What’s great is that these sites start with a simple day-to-day problem that can frustrates us all and present a solution. However, without intimate integration with payment services, it’s still a chore. I’m not so OCD that I will tag and text myself about every payment I make. Wesabe has payment integration, but is also going after the quicken market. Billmonk really benefited from integration with Obopay deal and perhaps Buxfer will find a similar partner. → Read More
Berkeley, California based Wesabe will announce a $700,000 round of financing tomorrow from O’Reilly AlphaTech Ventures (as well as a couple of individual investors), and Tim O’Reilly will join the company’s board of directors. A good overview video of the service, which launched in December, is below. Wesabe is best described as a web version of Quicken, but with some fundamental differences that make all the difference in the world. Transactions can be tagged, for example. Also, as individual merchants are renamed by multiple users to make it more definitive (think about the crazy merchant names that appear on credit card statements), this better merchant data is automatically distributed to all other users as well. One key difference between Wesabe and Quicken is a maniacal obsession with security and privacy. You can download data from up to twelve credit card, bank and other financial accounts. Your account credentials are never stored on Wesabe’s servers, though. You either download the data to your personal computer and then upload to Wesabe, or store your account credentials in an encrypted format on a small piece of Wesabe software on your computer. The result is that hackers can’t access your account credentials by breaking into Wesabe’s servers. Wesabe has also spent a lot of time making it as easy as possible to leave the service. You can easily export your data and, more importantly, delete it directly from the Wesabe servers. The service has been live for three months: $300 million in transactions have been recorded from 130,000 distinct merchants, and 1 million tags have been applied. The company has eight employees. This is OATV’s third investment (they also put money into Instructables and Chumby). → Read More
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