El Segundo’s Swagbucks, an online consumer rewards service, has raised $60 million from Technology Crossover Ventures, a venture capital firm in Palo Alto.
This is the first outside funding round for the 6-year-old company. A Swagbucks spokesman said Technology Crossover Ventures will receive a “significant minority” stake in the company along with the funding, which he characterized as a “primary growth-stage investment.”
Swagbucks offers consumers online rewards for activities including shopping, entertainment, surveys, discounts, games and Internet searches.
The company said in a statement that it has distributed over $60 million in free gift cards to consumers from stores including Amazon, Wal-Mart, Target, Starbucks and PayPal.
Along with the funding, former Fandango and Shopzilla Chief Executive Chuck Davis assume those duties at Swagbucks. The company’s co-founder and former chief executive, Josef Gorowitz, will now serve as president.
Davis is a venture partner at Technology Crossover Ventures and has served as the executive chairman of Swagbucks’ parent company, Torrance’s Prodege LLC, since January 2013.
“Swagbucks first caught my interest in 2012 when I observed their impressive, entrepreneurial growth and diversified revenue model,” Davis said in a press release.
The company said the funds will support heavy investment in mobile, product development and international markets.
Swagbucks said it has been profitable since 2010. It said it earned revenue of $53 million last year, a 51 percent increase from the year earlier.
For reprint and licensing requests for this article, CLICK HERE.