BillMyParents Raises $4.86 Million In Equity Funding
BillMyParents is a startup that is promoting teens to spend responsibly through the use of a prepaid SpendSmart MasterCard. BillMyParents has recently raised net proceeds of $4.86 million following a deduction of fees and expenses that came to under $622,000 according to TheNextWeb. BillMyParents CEO and chairman Mike McCoy said that the company will be using the funds for further development and growth.
BillMyParents’s SpendSmart MasterCard is a trackable prepaid car that allows parents to reload it. Parents can see what their kids are spending money on in real-time. The card can be instantly locked, unlocked, and reloaded anytime.
Parents and teenagers can receive text alerts to see what has just been spent. This is a also great way to find out if a merchant made an error in charging the wrong amount. Teenagers will not be able to spend more than what is preloaded on the card. The company has iOS and Android devices to track the spending.
BillMyParents had issued 13,719,975 shares of common stock at $0.40 per share to several private investors. The company also gave out five year warrants to allow owners to buy up to 8.125 million additional shares at an exercise price of $0.50 per share and an extra 1.399 million shares at $0.60 per share. BillMyParents announced back in November that Justin Bieber is one of their brand ambassadors.