Balanced, a payments and escrow platform, has announced they are shutting down operations and have given a 90 day notice to clients of the closure. The announcement was made by Balanced co-founder & CEO, Matin Tamizi. Balanced has formed an agreement with Stripe to migrate customers if they they are so inclined.
The Y-Combinator backed, San Francisco based, company posted on their site that they had not been able to “reach escape velocity” and thus made the fateful decision to shut down operations.
Balanced is shutting down in 90 days http://t.co/JANnN4hmlL
— Balanced (@balanced) March 13, 2015
Founded in 2010 by Tamizi, Mahmoud Abdeelkader and Jareau Wad , Balanced had targeted crowdfunding, marketplaces and bitcoin platforms as online payment clients. The had taken an open and unorthodox approach to enable new forms of e-commerce. At the time of the notice, Balanced listed several prominent crowdfunding platforms as clients including Tilt (and Tilt Open), WeFunder and Dragon Innovation.
The statement by Balanced is reproduced below.
We started building a payments service for marketplaces in 2011. We were shocked with the state of payments at the time, and the pains a marketplace had to go through. Despite the many challenges in the industry, we’re proud of how much we’ve been able to help marketplaces thrive over the last four years.
Unfortunately, we haven’t been able to reach the escape velocity necessary to be a large, innovative, independent player in the payments space and have decided not to continue building Balanced.
It’s important to us to identify a graceful transition for our customers, employees and investors – and honor our existing agreements. To that end, we reached out to Stripe and have been working with them to provide a smooth path forward for our customers. We respect how Stripe has been able to innovate, grow, and become the best solution for marketplaces. Stripe has agreed to honor our existing pricing agreements and work closely with us to seamlessly migrate card, bank account, and seller identity data.
Our full API and dashboard will be available over the next 90 days (until June 11, 2015), and support for issuing refunds, querying transactions, and fighting chargebacks will continue for the next nine months (until October 9, 2015).
We realize this is sudden and we’re sorry for any inconvenience this causes. The full Balanced team will stay on for the 90-day migration period and a portion of the team will continue beyond then to make sure we’re able to provide you with the level of support you need. We appreciate you working with us and want to do everything we can to minimize the impact on your business.
To learn more about the migration, what it means to you, and the steps required to make the switch, go to balancedpayments.com/stripe. You’ll be able to sign into your dashboard and begin the process to migrate your data to Stripe.