Balanced is a company that offers payment processing, escrow, and payout features using one simple API. The company has raised a $3.4 million seed round of funding. Of that total amount, two million dollars was added recently by Andreessen Horowitz, CollabFund, and various angel investors. The initial $1.4 million of the seed round was from SV Angel, Brian Chesky (Airbnb CEO), Ashton Kutcher, Yishan Wong (Reddit CEO), and several others.
The seed round was strategic since the company wanted the help from investors to help grow their payments business for a peer-to-peer market. Jeff Jordan, the general partner at Andreessen Horowitz that put the money into this round, was the former president of PayPal, so he can bring valuable insight related to the online payment space.
Balanced is specifically used to help online marketplace companies like TheFancy, GroupMe, Reddit Gifts, and Zaarly to manage payments between users. Balanced helps companies retain their brand and keep customers on their website by offering a white-labeled solution. Fraud prevention and fund holding services are available through Balanced also. One of Balanced’s unique features is same day ACH payouts to Wells Fargo bank account holders.
Balanced’s transaction volumes grew about 30% in the past seven months and new account sign-ups increased at around 41%. In the last two months, the transaction volume grew 37%. Balanced was part of the Winter 2011 Y Combinator class. The company’s online marketplace payments platform launched last year.
Through the funding, the company plans to hire more engineers to help improve their products in the areas of accounting, fraud prevention, compliance, and expansion. Supporting additional currencies is one of their next goals.