There's a shared dread among shoppers at the check-out stand: that moment when the purchase is rung up, the total announced, and the associate smiles, takes a deep breath, and asks, “Are you interested in joining our club card program today?”
It’s not that we don’t appreciate the promise of exclusive savings—most of us love a good deal. We just question if we need another reason to justify buying more because, well, our homes and bellies only have so much room for more stuff. Still, those programs can prove to be useful on both sides of the counter. VC investors, always up for a great deal, see plenty of investment opportunities at those check-out stands.
Overall, VC investors have completed 138 deals involving U.S.-headquartered loyalty rewards companies, according to the PitchBook Platform. Deal flow in the space more than doubled from 2010 (12 deals) to 2011 (27), with the activity slightly decreasing last year (21) and climbing slowly this year (14). Belly, Punchh and LoyalBlocks are just a few of the companies landing deals within the past few months, as VC investors hope to turn investments in loyalty rewards companies into rewarding returns.