Start-up Jumio raises $6.5 million in funding
Mobile payment start-up Jumio announced yesterday on its blog that it has closed $6.5 million in financing. The announcement has garnered significant attention because the effort was led by Eduardo Saverin, co-founder of Facebook.
Saverin said, “I’m usually a critical person, but the last time I have seen such a disruptive idea was actually Facebook.”
The company said it took the unusual step of raising the money through the creation of a special-purpose acquisition company (SPAC) instead of through a venture capital fund. A SPAC allows individuals to purchase a stake in a company through private markets. The announcement said that participation in the company was offered to what it called “Ultra High Net Worth Individuals.”
Daniell Mattes, founder and CEO of Jumio, said, “There is a lot of interest from high net worth individuals to participate in start-up success stories like Facebook, Twitter, Zynga or Groupon. We offered the market such an opportunity and it was received extremely well to the extent that we were over-subscribed.”
The company said it is still on track to launch its product in six to eight weeks but did not provide any additional details or specifics about its services, technology or business plan.
About Saverin’s participation, Mattes did say, “It’s amazing how many luminaries are fascinated by our project.”
Mattes went on to say, “The way online and mobile payments are handled today are practically outdated. There is a lot of space for innovation, and our mission is to make online and mobile payments as simple and secure as a handshake.”