Cryptocurrency Venture for Gift Cards, Raise, Secures $63 Million in Funding, Guided by Haun Ventures
In a significant move for the gift card industry, Raise, a startup founded in 2013, has announced its expansion into the crypto market. This growth strategy, led by a $63 million funding round, will see the launch of "Smart Cards," enabling users to buy and unlock digital gift cards using cryptocurrency on the Raise app[1][2].
The "Smart Cards" integration will bring crypto payments into the platform's existing gift card services, making it easier for crypto holders to spend their assets on everyday purchases via Raise.
To support and guide this crypto expansion, Raise has formed a new crypto-centric board. This board includes prominent figures such as Marco Santori, a leading lawyer in the crypto space known for his expertise in blockchain regulation, and Bjorn Wagner, who brings experience in crypto and fintech innovation. This board is tasked with overseeing the strategy, compliance, and growth of Raise's crypto initiatives[1][2].
The fundraising round, which included a mix of primary and secondary share sales as well as token warrants, also attracted participation from Haun Ventures, Paper Ventures, Selini Capital, GSR, and Raj Gokal, the co-founder of Solana. The new board appointments were made alongside the fundraising round.
George Bousis, the founder of Raise, made this announcement to Fortune, stating that the time is now for Raise to expand into crypto. Bousis also mentioned that the crypto-branded round had nothing to do with the current financial health of his company[3]. He further stated that he wants to leverage blockchain technology to combat gift card theft, which reports indicate has drained hundreds of millions of dollars from Americans[4].
In addition to Santori and Wagner, the new crypto-centric board of Raise includes Matt Maloney, founder and former CEO of GrubHub, and George Ruan, cofounder and former CEO of Honey. This diverse team of experts is poised to drive Raise's growth in the crypto market, positioning the startup at the intersection of retail gift cards and the growing crypto economy[1][2].
The exact amount of funds raised in the new round was not specified. However, with a current valuation no less than its $675 million Series D valuation, Raise is well-positioned to capitalize on the growing demand for crypto-friendly services[5].
| Aspect | Details | |----------------------|-------------------------------------------------------------------------------------------------| | Use of $63M Funding | Entry into crypto via "Smart Cards" enabling crypto purchases of gift cards on the Raise app | | Product Innovation | "Smart Cards" – digital gift cards that can be bought/unlocked with cryptocurrencies | | Crypto Board Role | Strategic oversight, regulatory compliance, and guidance by experts like Marco Santori and Bjorn Wagner |
This approach positions Raise at the intersection of retail gift cards and the growing crypto economy, leveraging its new funding and expert board to capture crypto-native users and enhance mainstream crypto adoption[1][2].
[1] Fortune. (2022). Raise, the Gift Card Startup, Raises $63 Million to Expand into Crypto. Retrieved from https://fortune.com/2022/03/23/raise-gift-card-startup-raises-63-million-to-expand-into-crypto/ [2] TechCrunch. (2022). Raise Raises $63M to Expand into Crypto with Smart Cards. Retrieved from https://techcrunch.com/2022/03/23/raise-raises-63m-to-expand-into-crypto-with-smart-cards/ [3] Fortune. (2022). Raise, the Gift Card Startup, Raises $63 Million to Expand into Crypto. Retrieved from https://fortune.com/2022/03/23/raise-gift-card-startup-raises-63-million-to-expand-into-crypto/ [4] Fortune. (2022). Stolen Gift Cards Cost Americans Hundreds of Millions of Dollars Each Year. Retrieved from https://fortune.com/2022/03/14/stolen-gift-cards-cost-americans-hundreds-of-millions-of-dollars-each-year/ [5] Crunchbase. (2022). Raise. Retrieved from https://www.crunchbase.com/organization/raise-com-inc
- The new crypto-centric board of Raise, including Marco Santori, Bjorn Wagner, Matt Maloney, and George Ruan, will oversee the strategic growth, compliance, and regulatory aspects of Raise's expansion into the crypto market.
- With the launch of "Smart Cards" on its platform, Raise aims to make everyday purchases easier for crypto holders by allowing them to buy digital gift cards using cryptocurrency on the Raise app.
