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‘Loyalty’ Startup 500friends Gets Acquired; Backed by Intel, Crosslink

| November 18, 2014

San Francisco-based Inc., which creates incentive programs that help businesses retain customers, was looking to raise a new round of venture funding. It ended up joining a bigger company instead.

Justin Yoshimura, founder of 500friends, said the retail loyalty startup has been acquired by digital marketing company Merkle Inc. in a transaction valued in the “tens of millions” of dollars. He said it was a good outcome for investors but he declined to specify terms.

After raising a $1.4 million seed round, the company went on to raise $9.5 million in two rounds of funding, in 2012 and 2013, from Crosslink Capital, Intel Capital and Fung Capital. For its Series B round in 2013, the valuation was $24 million. Read more >>

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