BuySafe, an eBay auction and ecommerce bonding service, announced it has secured $13.25 million in equity from a team led by Grotech Capital Group and Core Capital Partners. BuySafe enables eBay sellers to guarantee their transactions up to $25,000 with a surety bond from Liberty Mutual. Grotech alone contributed $9 million, and first-round funders Hartford Ventures and Thomas Rutherfoord Inc. also invested in the current round.
The funding is intended to accelerate BuySafe's rapid growth and adoption by online sellers and buyers. The company has existing strategic partnerships with a number of the leading online sales organizations, including: the Professional eBay Sellers Alliance (PeSA), representing more than 700 of the largest sellers on eBay; Western Union BidPay online payment service; Channel Advisor and Zoovy, two of the leading service providers to online merchants and auction sellers; and TIAS, the leading marketplace for fine antiques and collectibles on the Internet.
The funding is also expected to give the company the resources to go multi-channel, supporting its bonded sellers on their own sites as well as other marketplaces. BuySafe has created a directory of bonded sellers at
http://www.buysafeshopping.com
Over the past 16 months since start-up, BuySafe has sealed over $1.2B worth of transactions ($275M in the month of February 2005); issued, as agent for the surety, more than half a million bonds; and in February delivered more than five million views of the BuySafe Seal.
Frank A. Adams, Managing General Partner of Grotech, believes BuySafe can change the face of eCommerce. "BuySafe provides a compelling solution to a fundamental problem with the Internet and eCommerce today," said Adams. "Millions of online shoppers avoid buying from small- to mid-sized online retailers who lack a trusted, national brand. We believe BuySafe provides a solution that allows these merchants to compete more effectively against the national brands."
Adams and Jonathan Silver, Managing Partner of Core Capital, have joined the BuySafe board.
http://www.buysafe.com
