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Council Ventures' portfolio company said closing after a lead investor balks
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Atlanta firm is a Council Ventures portfolio company

According to reports in TechCrunch and other media, iKobo Inc., a venture-backed company whose investors have included Nashville-based Council Ventures, is ceasing operations.

Some reports cite a supposed refusal by a lead investor to supply further investment at this time. The identity of the lead investor has not at this point been reported, to VNC's knowledge.

In addition to investment by Council Ventures, iKobo's reported $13 million capital raise included participation by Total Technology Ventures, WS Investments, Silicon Alley Venture Partners and Green Capital Partners.

Council Ventures' website today shows three active companies in the firm's portfolio, in addition to iKobo Inc.

Within the past week, a Nashville industry source outside Council Ventures said Council's efforts to raise a second fund could reach $90 million. Council Ventures, itself, has consistently refused to discuss fundraising in-progress, citing market regulations.

Atlanta-based iKobo has used a network of VISA merchants and ATMs to send and receive money, allowing consumers to use credit cards, debit cards, or bank accounts on-line to send a re-loadable Visa® Prepaid Card to recipients, without working through independent agents.

TechCrunch reported that iKobo had advised customers their accounts will be active "until 13 November," but also reportedly advised iKobo users to "withdraw their money at ATMs or make purchases in order to spend the balance of funds on their cards until the above-mentioned date. According to the bank cardholder agreement, after 13 November, the remaining balance is to be refunded to the sender."

Attempts to reach iKobo management have been unsuccessful, thus far. Council Ventures general partners have not yet responded to queries submitted by VNC this afternoon.

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Tags: banking, Council Capital, Council Ventures, gift cards, Green Capital Partners, iKobo Inc., private equity, Silicon Alley Venture Partners, stored value, Total Technology Ventures, venture capital, WS Investments

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