Openbucks reported launching a $1 million convertible promissory note private placement. According to the filing, 50% or $500,000 was sold to three backers on April 7th. $500,000 in additional funding can be raised before April 2015 based on the placement’s structure. One prior placement was closed under regulation D by the company and raised an estimated $6.3 million. The company is backed by Greycroft Partners a seed to early stage investment firm investing between $500,000 to $5 million per investment round.
The company is enabling customers to use their retailer gift cards (like Subway) to pay for goods online. The company’s payment platform integrates directly with Internet merchants on their payment options page so that they can accept gift cards in addition to other forms of payment at checkout. The company currently targets game publishers but plans to expand its offering to other online merchants, including social networks and online commerce companies. There is not service fee charged by the platform on the customer side.
The company, headquartered in San Jose CA, is led by Marc Rochman (CEO). Openbucks kept its revenues undisclosed.
The executive team includes Ryan Gilbert.
The board of directors includes Sumant Mandal.
The company has raised an estimated total of $6.8 million via private unregistered security offerings.
Status: First close
Industry: Other Technology
Amount offered: $1 million
Amount placed: $500,000
First sale: 04-07-2014
Data as of: 04-21-2014