GiftCertificates.com Secures $4.4M in Funding Round
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GiftCertificates.com Thursday said it coaxed an additional $4.4 million led by Boston's OneBeacon Insurance Group, a subsidiary of White Mountain Insurance Group Ltd.
The investment effectively closes the series A financing round at $18.6 million; other investors included CIP Capital, L.P.; Gotham Partners, L.P.; Mellon Ventures II, L.P.; SCP Private Equity Partners, L.P.; and W.R. Berkley Corp. One investment team partner discussed the reason for the online gift certificate provider's success in raising cash:
"GiftCertificates.com has survived and prospered in an extremely difficult capital markets environment because of strong demand for its attractive products, its compelling financial characteristics, and its competitive dominance of the gift certificate incentive marketplace," said William Ackman, partner at Gotham Partners, L.P. "Our favorite businesses are those that earn high returns on assets, have low cost liabilities, and participate in rapidly growing markets. These characteristics describe GiftCertificates.com perfectly and will contribute to the company's future success."