Buyapowa secures $3m in deal led by Juno Capital
Startups 100 company will use Series A round to boost UK sales and expand into US market
London-based social sales company Buyapowa has secured $3m in Series A funding in a round led by Juno Capital, with participation from Bright Station Ventures and other European investors.
Founded by Gideon Lask in 2011, the company looks to disrupt the way brands sell to consumers online via customer referral or ‘social-introduce-a-friend’ campaigns and promotions. It claims its clients typically see reductions in customer acquisition cost above 50% compared to rival campaigns, and works with more than 100 brands and retailers including Tesco, O2, Sony and L’Oréal.
The 2014 Startups 100 featured firm has chosen to seek investment from high net worth individuals, instead of venture capitalists, taking advantage of the UK government’s Enterprise Investment Scheme.
The finance will be used to fuel its entry into the US market, drive product development and increase sales in the UK.
Buyapowa’s Lask commented: “The EIS and organisations like Juno Capital have truly changed the game for UK entrepreneurs looking to create the digital businesses which will drive tomorrow’s economy.
“The support from our investors has been phenomenal. They, like us, understand the opportunity that ‘social introduce-a-friend’ can bring both here in the UK and across the pond too. When done right, social can open up a whole new world of opportunities for brands and that’s absolutely testament to Buyapowa’s success to date.”
Edward Rudd, founder and partner at Juno Capital, added: “Lask and the team at Buyapowa have created an exciting, proven and truly innovative product, evidenced by the success they’ve already gained in the UK and Europe. We’re confident that the team will bring the same success to North America and we wish them the very best of luck.”