These 4 Startups Are Giving Cash Back and Points Away For Free

3/28/24, 4:53 PM These 4 Startups Are Giving Cash Back and Points Away for Free
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Meet the under-the-radar startups raising millions by helping

big brands like Sephora upend customer rewards with cash
and celebrities — and why they're so effective
Shannen Balogh Share Save
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Rewards are a long-standing strategy for brands to get consumers
to buy. But consumers can lose track of the various loyalty and
rewards programs across brands.
https://www.businessinsider.com/rewards-startups-dosh-drop-seated-cashback-points-free-2020-2?r=US&IR=T 1/9
A group of startups have arrived on the scene offering one-stop-

shops for rewards, hoping to prove more effective than traditional
advertising.
Rewards range from cash back and points you can spend with
brands like Amazon and Delta, to experiences like video chats with
celebrities.
Here are 4 startups that are changing the way consumers can rack
up rewards.
Click here for more BI Prime stories.
For brands, reaching Gen Z and millennial customers is an ever-moving

target.
As consumer attention splits across various streaming and social media

platforms, it can be hard to know where to reach the right audiences.
But a few startups are offering brands a way to boost traditional

advertising — rewards.
To be sure, rewards aren't new. Retailers, airlines, restaurants, and

credit card companies have long enticed consumers with memberships,
points, and cash back. But consumers have to keep track of all those
loyalty programs.
So it can be hard for individual brands to get consumers' attention, with

rewards and offers often buried in inboxes filled with countless
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promotional emails.
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Honey is a browser plug-in that checks for discount codes when
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shopping online across thousands of brands. And if Honey's discount
drives a sale, it charges merchants a commission.
And Honey's value proposition was clear — it was acquired by PayPal

last year for $4 billion.
With a similar strategy to Honey, these startups are bringing retailers,

airlines, and restaurants together onto single platforms to offer
consumers one-stop-shops for rewards as a way to reach new customers
and boost sales.
Dosh, for one, promises to "close the gap" between digital ads and sales.
And Drop offers a platform for brands to "acquire and engage
customers in one place."
These apps are free for consumers, instead charging partner brands fees
or commissions on sales.
From cash-back offers to social media-linked perks, these four startups

and their VC backers are betting that rewards-made-easy is the best
way to get you to buy.
Dosh
Headquarters: Austin, Texas
Founded: 2016
Total raised: $87 million
Jump to Last round: $20 million Series B (and $20 million in debt financing) in
January 2019
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Key investors: Anthem Venture Partners (Abra, Bird, DailyPay),
Goodwater Capital (Monzo, Stash, TikTok), PayPal Ventures (Acorns,
Ellevest, Tala)
Dosh is a cash back startup that aims to close the gap between digital
ads and in-store purchases.
Dosh partners with brands like Dunkin' Donuts, Sephora, and Walmart
to offer consumers cash back rewards for shopping in-store and online.
Users link their credit cards and Dosh applies cash back on relevant
transactions. Dosh offers both in-app deals and automatic cash back
with certain merchants.
The startup is free for consumers, and charges retailers a percentage of

each transaction. Accumulated cash can be transferred to a user's
PayPal or bank account, applied to future purchases, or donated to
charities.
Dosh increases average order values (AOV) by 40% and increases

frequency of purchases by 29% on average, according to its website.
Related stories
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Last year, PayPal announced it would offer rewards on its Venmo debit
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Searchcards. Dosh, backed by PayPal Ventures, powers Venmo rewards.
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Drop
Headquarters: Toronto, Canada
Founded: 2015
Total raised: $75 million
Last round: $44 million Series B in March 2019
Key investors: ff Ventures (Clarity Money, Indiegogo, Socure), New

Enterprise Associates (Coursera, Robinhood, Letgo), White Star Capital
(Butternut Box, Freshly, Tier Mobility)
Drop is a rewards startup where users can shop within its app to earn
points, or link their credit and debit cards to earn points on other
purchases. It works with companies like Boxed, Capital One, and
Casper to offer points-based rewards to Drop users in an effort to
acquire new customers and increase the amount they spend. Drop also
provides its partner companies access to transaction and spend data.
When users accumulate enough points, they can be cashed in at

retailers like Amazon, Starbucks, and Uber.
Drop also has a Chrome plug in, similar to Honey, so shoppers can earn
points when online shopping.
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Crystal Cox/Business Insider
Seated
Headquarters: New York, NY
Founded: 2017
Total raised: Not disclosed
Last round: Not disclosed
Key investors: Not disclosed

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Seated, an app-based restaurant rewards startup, gives diners up to
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30% cash back for dining out at its partner restaurants. Take-out orders
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don't apply, as the startup's main selling point is filling seats in its
participating restaurants.
Users book reservations through the app, send in a picture of the

receipt, and receive cash back rewards that can be used at brands like
Delta, Nordstrom, and Uber.
Seated is available in New York, Chicago, Boston, Philadelphia, and

Atlanta.
Sweet
Headquarters: New York, NY
Founded: 2016
Total raised: $7.2 million
Last round: $5.8 million Series A in January 2018
Key investors: Not disclosed
Sweet connects merchants, musicians, and influencers with users who

want to be rewarded for liking, sharing, posting, and commenting on
social media.
Reward tokens, called "sugar," are given to Sweet's users who take
specified actions on social media channels. Many of Sweet's clients are
musicians and performers, and rewards range from experiences like
video chats with musicians to brand merchandise.
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SearchWatch: Sephora sells crayons that give your hair a burst of
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temporary color
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3/28/24, 4:53 PM These 4 Startups Are Giving Cash Back and Points Away for Free

Meet the under-the-radar startups raising millions by helping

A group of startups have arrived on the scene offering one-stop-

Click here for more BI Prime stories.

For brands, reaching Gen Z and millennial customers is an ever-moving

As consumer attention splits across various streaming and social media

But a few startups are offering brands a way to boost traditional

To be sure, rewards aren't new. Retailers, airlines, restaurants, and

So it can be hard for individual brands to get consumers' attention, with

And Honey's value proposition was clear — it was acquired by PayPal

With a similar strategy to Honey, these startups are bringing retailers,

From cash-back offers to social media-linked perks, these four startups

Headquarters: Austin, Texas

Total raised: $87 million

The startup is free for consumers, and charges retailers a percentage of

Dosh increases average order values (AOV) by 40% and increases

Headquarters: Toronto, Canada

Total raised: $75 million

Last round: $44 million Series B in March 2019

Key investors: ff Ventures (Clarity Money, Indiegogo, Socure), New

When users accumulate enough points, they can be cashed in at

Crystal Cox/Business Insider

Headquarters: New York, NY

Total raised: Not disclosed

Last round: Not disclosed

Key investors: Not disclosed

Users book reservations through the app, send in a picture of the

Seated is available in New York, Chicago, Boston, Philadelphia, and

Headquarters: New York, NY

Total raised: $7.2 million

Last round: $5.8 million Series A in January 2018

Key investors: Not disclosed

Sweet connects merchants, musicians, and influencers with users who

Payments Crystal Cox

Service and Privacy Policy .

Contact Us Masthead Sitemap Disclaimer Accessibility Commerce Policy Advertising Policies

Coupons Made in NYC Jobs @ Business Insider

Main content Stock quotes by finanzen.net Reprints & Permissions

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