The Plastiq team. (Image via Facebook)
Payments startup Plastiq announced Tuesday it has raised $10 million in Series B funding. And, with new money in the bank, the company will be relocating its headquarters from Boston to San Francisco.
The round was led by Khosla Ventures, with participation from previous investors Atlas Venture and Flybridge Capital Partners, bringing Plastiq's total amount raised to $20.3 million. The financing will be used to support the expansion of the startup's payment service, which allows consumers to pay with their credit card of choice regardless of merchant acceptance, across Canada and the United States.
Explained Plastiq CEO and Co-founder Eliot Buchanan in a statement:
At Plastiq, we are laser-focused on bringing payment choice to North American cardholders by enabling them to make payments with their card in instances when they otherwise could not. Plastiq has met success in Canada with the launch of payment categories such as tuition, income taxes, utilities and more. This round will support us in expanding our service and market, enabling North Americans to pay any organization or business with their existing card through Plastiq even when cards are not typically accepted.
Khosla Ventures Investment Partner Ben Ling, who's served as a senior executive at Google, YouTube and Facebook, touted Plastiq for its focus on the consumer. He will now sit on Plastiq's board of directors, while Keith Rabois, former chief operating officer at Square and current investment partner at Khosla, will start serving as an advisor.
Plastiq built the beginnings of its business out of the Harvard Innovation Lab. Flybridge General Partner Jeff Bussgang, also on the company's board of directors, previously noted:
I first met Dan Choi and Eliot Buchanan at Harvard’s i-lab when they were undergraduates and watched them develop their concept to reality. The early traction the company has achieved is amazing. With its innovative vision, state-of-the-art product, and strategic partnerships, Plastiq is well positioned to transform the payments industry.
Just over a year later, Bussgang's statement is proving positive.
Despite getting its start locally, however, Plastiq will be moving to San Francisco by Q4 "to recruit even more top talent and immerse itself in the thriving startup landscape."
