Finance startup Wesabe dies


Personal finance site Wesabe.com, which helped users track their spending and compare their habits with others, died Thursday, and will be deleting all customer financial data on July 31st. The site’s home page now displays a notice from CEO Marc Hedlund encouraging users to remove their data.
Staff and resources were stretched at Wesabe, which launched in 2005, and had been backed by Union Square Ventures and O’Reilly AlphaTech Ventures.
In its final days, the company was operating on a “shoestring budget,” according to Hedlund. “I’ve felt especially terrible that some members have a good initial experience but then hit a problem, often after investing many hours, and aren’t able to get help with it. That’s obviously a bad experience, and not what we want to offer,” he wrote.
Wesabe launched an iPhone app in 2009 to much fanfare, but membership has been lagging since competitor Mint.com was acquired by Intuit, maker of Quicken and TurboTax, for $170 million in September of that year.
The lack of available staff also raised security concerns. “We do not want to continue accepting new accounts if we cannot guarantee the security level we believe our service requires,” wrote Hedlund.
Wesabe is encouraging users to download their financial data, and will be providing new export tools for that purpose until July 31st, when the site will delete all customer data and log in credentials. The site will however keep its Wesabe Groups discussion section open thanks to a donation from one of its customers.