Birmingham is booming in the startup industry with Prepaid2Cash leading the drive with a $5.1 million funding round. Find out what this growth means for our city plus a big investor to keep your eye on.
Prepaid2Cash is on the rise thanks to Birmingham move
If you haven’t already heard about how you can turn your old gift and prepaid cards into cash, let me introduce you to Prepaid2Cash. This startup tech company, founded by Peter Vogt in San Francisco, made the move to Birmingham in 2019.
Since then, the company has seen tremendous growth. This is thanks to a seed round investment from the Alabama Futures Fund, and a very successful Series A round with big investors including Benson Capital.
When it comes to raising capital for a company, the seed round comes first. It provides funds for the company to grow, hire people and invest in marketing and the business. Prepaid2Cash did this and was then able to participate in the next level of funding, Series A. This secured them $5.1 million for a total amount of $7.2 million in funding overall.
“If we are fortunate enough to continue to see success in acquiring more customers, hiring the right talent, and increasing our revenue, we will be able to attract additional growth capital and raise a Series B, C etc . this will allow us to have greater impact on the city and region.”Peter Vogt, CEO, Prepaid2Cash
A big investor on the block
A huge investor in Birmingham right now is Benson Capital Partners, a for-profit founded by Gayle M. Benson, owner of the New Orleans Saints, New Orleans Pelicans and Birmingham Squadron.
Benson Capital strives to form new businesses, expand the workforce and foster wealth by investing and providing resources to local companies that are addressing large markets. Prepaid2Cash is just one of the local startups they have invested in so far, and they have even bigger plans.
“Going forward, we plan to further increase our commitment to the Magic City. We have a close relationship with the leading technology accelerators and seed funds and have prominent Birmingham tech founders as investors in our venture capital fund.”Mike Katz, Benson Capital
Birmingham Squadron + another investment
The Birmingham Squadron is an NBA G League team that has brought professional basketball and its loyal audience to Birmingham. Their first game, which happened Dec. 5, 2021, drew nearly 5,000 fans to Legacy Arena.
Owned by Benson, the franchise is meant to be more than just a sports team. It’s a new source of revenue that allows Benson Capital to invest in promising startups around Birmingham and grow our economy.
One of Benson Capital’s most recent investments is Birmingham-based startup Wyndy. This is a mobile app that creates a convenient way for families to find, book and pay vetted, background-checked college babysitters.
The company has already invested back $3 million into the community, benefiting many Birmingham college students with a platform to quickly get a part-time job.
Their market will only continue to grow as they look to approve at least 1,000 new sitters in Birmingham, Nashville and New Orleans.
What does this mean for Birmingham?
When Peter moved his company to Birmingham, he made the commitment to be a Southern startup. This means bringing in more investors that had a Southern-based focus and prioritizing plans to grow their team in the Birmingham area.
“Birmingham has a strong and growing tech scene, great talent of committed individuals and a cost advantage vs New Yourk City and San Francisco markets.”Peter Vogt, CEO, Prepaid2Cash
Prepaid2Cash’s successful funding will not only facilitate more jobs and opportunities for locals but will entice more companies to take advantage of our city’s unique market and make the move to Birmingham.