Finance Service Startup Wesabe Preparing To Shut Down
Wesabe.com is a finance services startup that helps people track spending trends. Now that service is preparing to shut down after raising about $4.7 million in funding from O’Reilly AlphaTech and Union Square. Wesabe is instructing users to download their data by July 31st. Below is a note that Wesabe CEO Marc Hedlund sent out to users.
“In recent months Wesabe has been operating on a shoestring budget, with support from some of the developers and operations people who made up our core team. While the site has remained online and we continue to hear from people who find it helpful, we have not been able to provide the support people need to use it for something so central as financial management. I’ve felt especially terrible that some members have a good initial experience but then hit a problem, often after investing many hours, and aren’t able to get help with it. That’s obviously a bad experience, and not what we want to offer. Also, because Wesabe stores such highly sensitive data, continuing to operate the service with shoestring operations and security staff is not acceptable, and we do not want to continue accepting new accounts if we cannot guarantee the security level we believe our service requires.”
Wesabe grew only slightly, but was dominated in competition by Mint.com. Mint was acquired by Intuit for $170 million a few years after launching. [TechCrunch]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry