Raise.com

Last updated
Raise Marketplace
RaiseCompanyLogo.png
Type of businessPrivately owned
Headquarters
Chicago, Illinois, U.S.
Area servedUnited States
Founder(s) George Bousis, Bradley Wasz
CEOJay Klauminzer
IndustryeCommerce
URL www.raise.com
Launched2013

Raise.com is an e-commerce platform owned and operated by Raise that enables third-party individuals to sell Gift Cards on a fixed-price online marketplace alongside Raise's regular offerings. [1] The company is based in Chicago, Illinois, and was launched in 2013 by founder George Bousis, who still remains the Executive Chairman today alongside CEO Jay Klauminzer.

Contents

History

Raise.com was initially conceived as a spinoff of another service created by Bousis and Bradley Wasz, called CouponTrade, which was founded in 2010. [2]

Since that time, the marketplace became more amenable to Bousis' idea. As stated by Crain's Chicago Business column, "a 2009 federal law prevented gift cards from expiring for five years; cards went from a magnetic stripe to all-digital in 2010; and advances in mobile technology made it possible to buy and sell cards on a smartphone." [3]

Founded in 2013, Raise.com received $18 million in Series A funding from Bessemer Venture Funding. [2] [4] A second round of funding in 2015 saw $56M in Series B funding from New Enterprise Associates. [5] [6] [7] [8]

In August 2015, Raise.com acquired Tastebud Technologies for an undisclosed amount. Its CEO, Tyler Spalding, took the Chief Strategy Officer role within Raise.com. [9] [10]

In June 2016, Raise acquired Slide for an undisclosed amount in stock, a company which allows people to store gift cards in a digital wallet/passbook. Raise also announced plans to open a New York office. [11] [12]

As of 2016, the company is valued at about $1 billion, as presented by the New York Times. [5] [13]

In September 2017, Raise raised $60M in Round C funding to expand its mobile payment network. [14]

In late 2018, Raise appointed a new CEO, Jay Klauminzer, a marketplace veteran from Groupon and DoorDash. [15]

Business model

Raise.com takes a 12% cut from the sale of every gift card. [16]

In the period between funding – in 2014, Raise.com released a mobile app (iOS only) version of its marketplace. [17] [18]

Raise.com also has partnerships with "over a dozen undisclosed retailers so far who are interested in the sorts [of] consumer shopping insights Raise can provide." [6] [16]

Raise has a one-year money back guarantee on purchases made directly through the marketplace.

In 2020, the company also launched two new products based on learnings from their marketplace. Slide, a mobile payments app, offers 4% cash back at a few hundred retailers. Users receive a 1% bonus when adding funds to their account (which also speeds checkout). Users select a merchant, enter the amount of spend, and are then issued a barcode that can be scanned at the register or typed in online. Slide peaked at #17 on the iOS store in December 2020. rZero is a fraud detection platform that was originally built for Raise to address gift card fraud, but it's now used widely across FinTech and other high risk use cases.

Gift card fraud

Some users of Raise.com have experienced gift card fraud, typically executed by people who steal items under the return receipt requirements of stores and then requesting gift cards. [19] [20] Generally, customer service regarding fraudulent gift cards receives minimal complaints, and most receive a 100%+ refund. As AdvisoryHQ states, "Many of the negative Raise reviews on this review site are from buyers who waited until after Raise's 100-day money back guarantee had expired before trying to use their gift card – only to discover that the card was invalid or had a different value than expected." [21] [22] Now the company offers a 365-day money-back guarantee instead.

While Raise has not publicly commented on this, their terms of service state that any user who attempts to sell an "invalid card" will be subjected to a sale price reversal and may be liable for the 12% sales commission. Additionally, the account holder may be charged a "card refund fee" in the greater amount – $20 or 15% of the gift card sale price. [23]

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References

  1. ↑ "3,000+ Brands, Always On Sale". www.raise.com. Retrieved 2019-09-08.
  2. 1 2 Perez, Sarah. "Gift Card Marketplace Raise.com Gives Itself A Raise With $18.1 Million In New Funding". TechCrunch. Retrieved 2016-08-31.
  3. ↑ "The amazing rise of Raise". 8 January 2016. Retrieved 2016-08-31.
  4. ↑ "The Holiday Season Isn't Over Yet for Retail". The Wall Street Journal. Retrieved 2016-08-31.
  5. 1 2 "11 Chicago tech companies in the billion dollar club". Built In Chicago. Retrieved 2016-08-31.
  6. 1 2 Perez, Sarah (22 January 2015). "Gift Card Marketplaces Raise Grabs $56 Million From NEA And Others". TechCrunch. Retrieved 2016-08-31.
  7. ↑ Bertoni, Steven. "Gift Card Marketplace Raise Snags $56 MM Series B: Valuation Tops $500 MM". Forbes . Retrieved 2016-08-31.
  8. ↑ Sky, Blue. "Raise Marketplace's $615 million valuation means further 'validation'". Chicago Tribune . Retrieved 2016-08-31.
  9. ↑ "Raise tastes its first acquisition with Tastebud Technologies". Built In Chicago. Retrieved 2016-08-31.
  10. ↑ "Raise Marketplace Inc.: Private Company Information – Businessweek". www.bloomberg.com. Retrieved 2016-08-31.
  11. ↑ "Raise acquires New York-based Slide app". 23 June 2016. Retrieved 2016-08-31.
  12. ↑ "Raise acquires Slide, announces plans for New York office". Built In Chicago. Retrieved 2016-08-31.
  13. ↑ Times, The New York (23 August 2015). "50 Companies That May Be the Next Start-Up Unicorns" . Retrieved 2016-08-31.
  14. ↑ "Raise Secures $60 Million in Series C Funding Round, Led by Accel, to Drive Growth and Expand Mobile Payments Network". www.businesswire.com. 2017-09-19. Retrieved 2021-04-14.
  15. ↑ "Raise founder Bousis hires a new CEO from DoorDash". Crain's Chicago Business. 2018-11-05. Retrieved 2021-02-03.
  16. 1 2 Rogers, Bruce. "George Bousis' Raise Creates Cash System For Gift Cards". Forbes . Retrieved 2016-08-31.
  17. ↑ Perez, Sarah. "Raise.com's New App Lets You Buy Discounted Gift Cards To Instantly Save While Shopping". TechCrunch. Retrieved 2016-08-31.
  18. ↑ "Gift Card Marketplace Raise.com Launches Mobile App to Revolutionize Retail, Reveals Backing from Bessemer Venture Partners | Business Wire". www.businesswire.com. Retrieved 2016-08-31.
  19. ↑ "The Role of Phony Returns in Gift Card Fraud – Krebs on Security". krebsonsecurity.com. Retrieved 2016-08-31.
  20. ↑ "Raise.com". www.sitejabber.com. Retrieved 2016-08-31.
  21. ↑ "Any experience with Raise.com?? • /r/Frugal". reddit. Retrieved 2016-08-31.
  22. ↑ "Raise.com Review | What Is Raise and Is It Legit? Raise Gift Card Reviews". 2016-06-30. Retrieved 2016-08-31.
  23. ↑ "Raise.com". www.raise.com. Retrieved 2016-08-31.
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