Juno News 1,936 views Dec 13, 2015
Buyapowa announces $3 million investment to expand ‘social intr

New funding round to support entry into North America, product innovation and EMEA sales expansion.

Buyapowa, the leader in ‘social introduce-a-friend’ technology, today announces it has raised $3 million in Series A funding. The financing was led by Juno Capital with participation from Bright Station Ventures and several other European investors.

“‘Social introduce-a-friend’ is our turbo-charged take on referral marketing. We allow our clients to use the language and rhetoric of social to motivate and reward their existing customers for bringing them new ones” said Buyapowa founder and CEO, Gideon Lask.

Having recently won its first North American client, Costco, Buyapowa will use the funds to support entry into the North American market. The capital will also be used to support product innovation and sales expansion in the UK and EMEA.

Buyapowa was founded in 2011 by e-commerce veteran and ex-HMV.com managing director, Gideon Lask, who believed that social was set to disrupt the way that brands sell and consumers buy online. Four years on, the award-winning SaaS platform is working with brands including Tesco, O2/Telefoncia, Sony and L’Oréal to turn fans and followers into shoppers via online customer referral campaigns and promotions seeded via social media and targeted CRM. Retail clients have typically seen reductions in customer acquisition cost in excess of 50% versus other online campaigns.

Having worked with over 100 brands and retailers, run thousands of campaigns, and engaged millions of users, Buyapowa has seen quarterly revenue growth of 50% and is forecasted to grow revenues by over 150% in 2015.

Rather than seek investment from venture capitalists, Buyapowa chose to raise money from networks of high net worth individuals who take advantage of the UK government’s Enterprise Investment Scheme. Launched in 1994, the Enterprise Investment Scheme has promoted investment of over £9.7 billion since its inception and makes it attractive for high net worth investors to invest in exciting technology businesses like Buyapowa.

“The EIS and organisations like Juno Capital have truly changed the game for UK entrepreneurs looking to create the digital businesses which will drive tomorrow’s economy,” said Lask. “The support from our investors has been phenomenal. They, like us, understand the opportunity that ‘social introduce-a-friend’ can bring both here in the UK and across the pond too. When done right, social can open up a whole new world of opportunities for brands and that’s absolutely testament to Buyapowa’s success to date.”

Edward Rudd, founder and partner at Juno Capital added: “Gideon and the team at Buyapowa have created an exciting, proven and truly innovative product, evidenced by the success they’ve already gained in the UK and Europe. We’re confident that the team will bring the same success to North America and we wish them the very best of luck.”

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