Kiip, maker of a mobile rewards network, said Tuesday that it raised an $11 million Series B funding round led by Relay Ventures, with participation from existing Series A investors including Hummer Winblad and True Ventures. The money will be used to expand its rewards network.
Kiip today announced that it has successfully raised an $11 million Series B funding round led by Relay Ventures, with participation from existing Series A investors Hummer Winblad and True Ventures, and others. The investment will be used to help the company expand the Kiip rewards network beyond gaming; launch new consumer-facing products to engage millions of consumers that receive Kiip rewards every month; and reinforce Kiip’s position as the global leader in mobile rewards that drive unprecedented engagement for its brand advertisers while increasing user retention and revenue across an expanding number of mobile games and apps.
“It is an honor to receive this infusion from such a renowned group of investors, with the insight and influence to help the Kiip team lead the charge to bring rewards into everyday life,” said Brian Wong, CEO and co-founder of Kiip. “It has been a tremendously rewarding team effort to build an entirely new industry category that created the coveted win-win-win. Developers monetize and ‘kiip’ their users longer, brands reach potential consumers while building affinity, and mobile users benefit from rewards that augment their existing experiences. The capital and guidance of our new and existing funding partners will help us create a new, exciting chapter for our company.”
Currently, the company is tracking more than 100 million “moments of happiness” (the user’s achievement of performance and progress milestones in the games or apps) every month in the United States alone on more than 400 apps, giving out an average of five rewards every second. With an initial engagement rate of 18 to 22 percent, the platform’s rate balloons to 50 percent for users who have previously redeemed a Kiip reward.
The new investment round will also be used to support the launch of the company’s new Kiip app, a mobile rewards wallet that consumers can use to store their Kiip rewards while exploring new apps and games that are Kiip-enabled. The Kiip app, also called “Kiipsake,” will be released in late July 2012, and is primarily designed to bring convenience to users that redeem Kiip rewards.
“Kiip is the first company to identify and effectively leverage the massive mobile rewards market for games and apps,” said Kevin Talbot, managing director of Relay Ventures and a new member of the Kiip board of directors. “We’re excited to lead this round of funding that will empower Kiip’s brilliant team to take their model to another level of growth. Kiip solves a few incredibly important needs in the current mobile space: app monetization, user retention and engagement, and helping brands build closer connections to new and existing consumers. The technology their team has created introduced something brand new to solve these problems seamlessly. We can’t wait to see the way Kiip’s powerful model shapes the way that the advertising industry is thinking about mobile.”
The Kiip rewards network redefined mobile advertising and rewards by aligning the interests of users, major brands and game/app developers by linking moments of achievement with rewards from major brands. Kiip now works with more than 40 brands including American Apparel, Best Buy, Disney, Dr Pepper, PepsiCo, Popchips, Sony Music, 1-800-Flowers.com, Wrigley and many others. More than 400 games and apps employ the Kiip network including multiple games from leading developers such as Kira Games (Unblock Me), Playforge (Zombie Farm) and Get Set Games (Mega Jump and Mega Run).
About Relay Ventures
Relay Ventures is an early stage venture capital firm that invests in passionate entrepreneurs disrupting and creating new markets through mobile technologies. Unlike other funds, Relay exclusively focuses on software for mobile devices and the connected Internet, creating an unparalleled set of networks and resources that tangibly help founders build world-class companies. With offices in Menlo Park and Toronto, the firm is active throughout North America. For additional information, visit www.relayventures.com.
Kiip is the world’s first mobile rewards network that delivers tangible rewards for virtual achievements. The company’s category-creating rewards platform enables brands to reach consumers in the moments when they are most engaged and receptive, while driving revenues and greater user allegiance for Kiip-enabled games and apps. Kiip was founded in September 2010 by Brian Wong, Courtney Guertin and Amadeus Demarzi. In addition to its San Francisco headquarters, Kiip now has offices in New York City, Chicago, Los Angeles, and London. Kiip is currently backed by Relay Ventures, Hummer Winblad, True Ventures, Verizon Ventures, Crosslink Capital and others.