Fintech platforms like Stripe, Venmo, BillPay and others have become known for making payments between friends, consumers and businesses easier. But to Reed Switzer, CEO and co-founder of Hopscotch, there is a large disconnect between fintech platforms and small businesses.
As a Gen Zer and admirer of platforms that make it easier for individual consumers to send each other money, Switzer sought to create Hopscotch — a similar platform that instead caters to freelancers and small businesses owners. And the startup just raised fresh funds to build out and publically launch its platform.
Since most small businesses and freelancers operate on tight margins, Switzer believes it is of utmost importance for B2B payment platforms to be more convenient for them.
“I don’t see any reason why businesses should have to wait or pay to access money that they’ve already earned,” Switzer told Built In. “There’s no reason why business payment platforms need to be more complicated than the systems we use in our personal lives.”
On Tuesday, the startup announced that it raised a $6.1 million seed extension round co-led by Shine Capital and Stellation Capital. This brings Hopscotch’s total funding raised to date to $9.9 million, according to the company.
Hopscotch’s technology works to help small businesses and freelancers process their payments and receivables with no added fees. Once a Hopscotch user is paid, the finances are automatically available to the business owner, even if the payment comes from a user that is not a Hopscotch customer.
With its fresh funding, the startup plans to double its team and launch its platform out of beta mode, which is currently open to friends and family. In the meantime, Hopscotch is actively hiring for several roles across various departments, including engineering, marketing, operations and sales.
This recent funding round took one month to close. Switzer said the speed of the round was due in part to the startup’s focus on further building the product and rather than focusing solely on fundraising.
Within the next few months, Hopscotch has plans to come out of beta mode and expand its feature offerings.
“We’re building a destination for small businesses to connect, transact and grow together. Today, we look like a payments platform. Tomorrow, we’re defining a new category,” Switzer said.
