Ifeelgoods, a Menlo Park, Calif.-based startup that helps brands implement incentive programs, including on Facebook, using its Facebook Credits virtual currency, has landed a $6.5 million Series A round led by the European venture firm Idinvest Partners, formerly known as AGF Private Equity. Tugboat Ventures, which led a $1.5 million seed investment in Ifeelgoods last year, also participated in the round.
Ifeelgoods, an award-winning marketing and technology leader in digital goods incentives that drive sales and social media engagement, today announced it has secured $6.5 million in a Series A round of funding led by Idinvest Partners, a leading European venture capital firm. Ifeelgoods also welcomed the participation of seed-round investor Tugboat Ventures. Ifeelgoods will use this new capital to extend its market leadership and expand its digital goods incentives solutions to better serve existing customers as well as reach customers in new vertical and international markets.
Since launching in September 2010, Ifeelgoods has been on the forefront of technological and marketing innovation in digital goods and social media marketing. It has signed more than 20 brand-name customers, including 1-800-Flowers.com, Gap, Gamefly.com, Ice.com, Meijer, Shopping.com, FTD and La Redoute.
These leading brands have implemented Ifeelgoods solutions to leverage digital goods, beginning with Facebook Credits, as an incentive for purchases, online advertising, Facebook fan acquisition, email signups and Twitter marketing. Ifeelgoods’ clients are seeing success with this new marketing strategy. Shopping site ShopAtHome.com has added 1.3 million new Facebook fans since mid-December. Shoebuy.com incorporated a Facebook Credits incentive into its Facebook ads and saw its click-through rate double. And, Ice.com’s campaign to acquire Facebook fans with a Facebook Credits incentive was its best social media campaign to date. To see some actual examples, please click here: http://corp.ifeelgoods.com/index.php?post/Overview
“Ifeelgoods allows retailers and brands to reduce the growing costs of promotions, incentives and online advertising while measurably engaging customers in social media. And for once, this can be scaled globally thanks to the worldwide adoption of Facebook and Facebook Credits,” said Guillaume Lautour, Partner at Idinvest Partners.
“Combined with our success in servicing Top 100 online retailers and major brands in both the U.S. and Europe, this investment is further validation of our vision to make digital goods a new and more efficient marketing channel for driving sales and engagement,” said Michael Amar, co-founder and CEO of Ifeelgoods. “Ifeelgoods will use this new capital to accelerate growth worldwide, introduce new and innovative products and services, and better serve our customers.”
About Ifeelgoods, Inc.
Winner of the 2011 Web 2.0 Startup Showcase, Ifeelgoods leverages its patent-pending technology to make online retail promotions more effective and less expensive by using relevant digital goods and currencies from the most popular social games in place of traditional promotions such as discounts, coupon codes or gifts with purchase. Current clients include 1-800-Flowers.com, Gap, Ice.com, Shoebuy.com, Shopping.com, Dallas Mavericks, Lifetime Brands, La Redoute, Gamefly, 1-800-PACK-RAT and The Golf Warehouse. Ifeelgoods is a hosted solution that manages retailer digital goods promotion offers, redemption and customer service. Ifeelgoods is headquartered in Menlo Park, California, and has locations in McLean, Virginia, and Paris, France.
About Idinvest Partners
Idinvest Partners is a leading pan-European mid-market private equity firm. With $4B under management, Idinvest Partners is active across different segments, including direct investments (growth equity, venture capital, and LBO), mezzanine, secondary transactions, and primary commitments to funds. Founded in 1997 as AGF Private Equity, Idinvest Partners was a subsidiary of Allianz until May 2010, when it became independent. In venture capital, Idinvest Partners is a lead investor of Criteo, Talend, Meetic, Viadeo, Dailymotion, Scality, Deezer along with more than 60 other startups in IT and CleanTech. For more information about Idinvest Partners, visit http://www.idinvest-partners.com/en/.
About Tugboat Ventures
Tugboat Ventures is an early stage, lifecycle venture capital firm dedicated to serving the highest potential entrepreneurs and business innovators today. Tugboat invests significant time, energy and money behind a select number of entrepreneurs to assist them in building important, market leading companies. Tugboat’s active involvement starts as early as concept stage and continues through public offering and beyond. Tugboat invests primarily in the San Francisco Bay Area and focuses on capital efficient companies in the areas of software infrastructure, enterprise software-as-a-service, consumer internet, mobility and cloud computing. Current and prior companies served by Tugboat’s team include Blue Nile, Drugstore.com, Good, Imperva, PGP, RepairPal, richrelevance, ShopItToMe and SuccessFactors. For more information about Tugboat Ventures, visit http://www.tugboatventures.com.