Reuters: Private Equity: PayPal, Betfair backers fund crowdsourcing startup

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PayPal, Betfair backers fund crowdsourcing startup Apr 17th 2012, 23:01 April 18 | Tue Apr 17, 2012 7:01pm EDT April 18 (Reuters) - Money transfer startup TransferWise, which bypasses banks and taps consumers to move funds, said it has raised $1.3 million from venture firms and backers of PayPal and Betfair to expand its reach. London-headquartered TransferWise, which so far operates between Britain and eurozone, uses the real mid-market exchange rates and charges a low flat fee on small transfers, undercutting banks. "We are using the power of technology and the crowd to disrupt the industry and cut out the middlemen, and many of the middling fees, from a service that is dominated by banks," said co-founder Taavet Hinrikus, who was one of the first software engineers at Skype. The startup, founded by Estonians Hinrikus and Kristo Kaarmann, said the investment round was led by IA Ventures, Index Ventures, PayPal co-founder Max Levchin and included backers of Wonga and Betfair.

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