New York City-based loyalty marketer FreeRide Media LLC said it has closed on
venture capital funding in excess of $10 million.
Lead investors are Odeon Capital Partners LP and Applewood Associates LP. The
funds will be used to expand FreeRide’s consumer rewards program and to
support the development of new products and services, the company said.
With more than 1,300 sponsor offers, FreeRide claims to be the Internet’s
largest
rewards program, although there is plenty of competition in the incentive
marketing arena.
At the FreeRide site, members accumulate
“FreeRide Points” by visiting sponsor Web sites, purchasing products and
filling out surveys. Points are redeemed for products and services ranging
from movie tickets to CDs to magazines to Internet service. FreeRide sponsors
include AT&T, Beyond.Com, Disney,
Supermarkets Online, Visa, CDnow and Toys R Us, among others.
The latest round of financing is intended to help FreeRide increase
membership and launch new offerings, the company said. For example, in
addition to offering material incentives to consumers, FreeRide also plans to
market customer-satisfaction tools to other Web sites that put them directly
in touch with visitors’ wants and needs.
“FreeRide has built a sustainable, long-term revenue model based on
satisfying both the consumer and sponsors’ needs,” said Matthew Smith,
managing partner at Odeon. “FreeRide understands the fundamentals of
attracting and retaining customers in the online environment better than
anyone else.”
