Bloomspot Raises $40 Million
Bloomspot, a deals company focused on high-quality spending and loyal customers, has raised $40 million in funding. The funding comes from InterWest Partners, Columbia Capital, Menlo Ventures, True Ventures, QED Investors, Harrison Metal, Western Technology Investment, Erik Blachford and Gary Parsons. The company analyzes (with permission, TechCrunch reports) the credit card spending data of the places they’re running deals, allowing Bloomspot and their partner merchants the opportunity to see whether a deal really encourages other buying that makes the deal profitable for the merchant. That data helps predict how much customers will spend when provided with a certain offer, which in turn lets Bloomspot promise a certain level of profits to their partner merchants.
Customers who use Bloomspot are rewarded for their data with better deals for repeat purchases with the same merchant and for using the same card with both Bloomspot and the merchant. Bloomspot’s CEO and co-founder Jasper Malcomson explains, “in a way, it’s less about discounts and savings, and more about recognition and status.”