While continuing my broad market survey, I encountered another competitor: Buxfer. This company was formed in 2006, is reasonably well funded (in Silicon Valley) and has developed a sophisticated product for managing personal finances. One aspect of personal finances is the online exchange of money between people. Therein lies the competition.
But having said that, they have focused so intensely on personal finances that it makes their tools very cumbersome (and perhaps even unusable) for our target markets i.e. micro-charities and small groups. The amazing news is that within two years, they have grown to manage almost a billion (yes, B) dollars in around 4.3 million transactions. Whether that is money “managed” by them or money “transfered” by them is not clear. Their business model is also not very clear at this stage but will become more so as we look closer.
I’m massively encouraged over the last week at what I consider excellent indicators of the potential size of our market and how quickly we might penetrate it. The biggest challenge is getting it done before someone else heads this way.
I need to go bigger, faster. I thought we had a little more time. We probably don’t. Time to sharpen the corporate fund raising pencil.