Hopscotch, which is designing consumer-like experiences for the B2B payments space, has surfaced from stealth, alongside the close of a $3.6m seed round.
NOEMIS Ventures and Stellation Capital served as the lead investors, with commitments also coming from Valar Ventures, Valor Equity Partners, 3KVC, Red & Blue Ventures, NfX, Brightlane Ventures, Switch VC and The MBA Fund.
Capital will be used to expand its engineering, product and marketing teams, as well as improve its technology capabilities.
Hopscotch was created by Reed Switzer following experiences with elaborate processes when paying service providers or getting paid for work. Existing tools were too complex, with feature overload, limited connectivity between users, lengthy waits to receive funds and transaction fees, Switzer explained.
Having used many P2P payment platforms, Switzer knew there was a way to improve the B2B payment experience.
Switzer said, “We’re in the infancy of a payments revolution. P2P and B2C transactions have evolved significantly over the past decade, but B2B payments have lagged behind. Newcomers to the space are battling on the front of utility.
“We have the opportunity to build an enduring platform that combines utility and connectivity between users. Hopscotch’s stored value accounts and consumer-like business profiles enable us to create an unmatched payments experience. We’re excited about what this means for the future of small business and the new ways entrepreneurs will be able to create and retain value.”
Whilst in stealth mode, the FinTech company collaborated with local small businesses to help them remove friction.
Hopscotch offers fee-free B2B payments for startups and small businesses.
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