Socialwise Raises $3.5M for Teen Prepaid Card and ‘Bill My Parents’ Payment Solution
San Diego-based Socialwise, which has developed payment solutions that target teens and their parents, has raised nearly $3.5 million of a planned $4 million offering, according to a recent regulatory filing. As I reported a couple of years ago, former Gateway computer executive Jim Collas founded Socialwise, which trades on the Nasdaq over-the-counter market as SCLW, after shutting down the San Diego incubator Idea Edge.
In a statement issued by the company last week, Collas says, “This round of funding is intended to allow us to fully engage our national marketing and customer acquisition programs for our premium products and to quickly gain momentum in the marketplace.”
Socialwise says it plans to announce a partnership with “a significant online entertainment service company” as part of a marketing strategy that targets both teens’ strong desire for spending independence and a prepaid card for teens. The company says it’s also planning targeted advertising, pro athlete-endorsed projects, social media outlets, consumer events and sponsorships that will continue through next year.
Socialwise says its Flagship product offering is an online payment solution for young people, called “BillMyParents,” which actually provides a range of payment options. The choices include giving parents complete control over their teens’ purchases, a MasterCard prepaid gift card, to simply enabling parents to monitor their teens’ spending. Socialwise says its Web-based technology facilitates communications between parents and their children and helps to teach financial responsibility.
The New York-based Maxim Group acted as placement agent in the stock offering.