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RewardMe

Intelligent CRM solution for local commerce
Startup Cemetery
GENERAL INFORMATION
Category:
Marketing
Country:
United States
Started:
2010
BUSINESS FAILURE
Outcome:
Shut Down
Cause:
Lack of Funds
Closed:
2015
FOUNDERS & EMPLOYEES
Number of Founders:
3
Name of Founders:
Jun Loayza, Stephen Johnson, Yu-kai Chou
Number of Employees:
10-50
FUNDING
Number of Funding Rounds:
1
Total Funding Amount:
$1.1M
Number of Investors:
2

What was RewardMe?

RewardMe was the world's first real-time intelligent Customer Relationship Manager (CRM) Platform for Local Commerce and was established in 2010. The RewardMe Platform provided a way to empower trade arrangements by providing data on the consumer that could be used by local business to effectively target their consumers.

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Why did RewardMe fail and shut down?

According to one of the co-founders, the major pitfall their company had fallen into was that of wanting to scale up the company prematurely. The way they did business caused to incur severe financial expenses that could have easily be avoided if the company had taken the lean approach to building its business. RewardMe acquired most of its customers by organizing expensive conferences and arranging for expensive meetings with potential investors, they also held inventory before they actually had customers for them. When they were not able to raise the next round fast enough, it disheartened a portion of the key individuals on the group. Without another financial support and having numerous key individuals worn out, RewardMe did not have any assets to push forward. They hence decided to decline the money offered by investors at the last minute as it was too late. The founders could not guarantee they could deliver and eventually suspended their services.

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