Target and Toys R Us posted overall sales declines during the holidays.
Arroweye Solutions, which provides customized online greeting and gift card software to retailers including Circuit City, Toys `R` Us and Harry & David, has received $14 million in new venture capital.
Arroweye Solutions Inc., which provides customized online greeting and gift card software to retailers including Circuit City Stores, Toys `R` Us, Lowe’s and Harry & David, has received $14 million in new venture capital. The financing was led by Baird Venture Partners and included Adams Street Partners.
Chicago-based Arroweye will use the proceeds to expand its sales and marketing operations, the company says. In addition, Devin Mathews, who is a partner with Baird Venture, and Adams Street partner Jeff Diehl will join Arroweye’s board. The two venture capital firms are also based in Chicago. Other terms were not disclosed.
“Arroweye is at the intersection of a few exciting trends: the explosive growth in the $100 billion gift card industry, the continuing expansion of e-commerce and the power of the Internet to provide consumers with more personal relationships with brands and retailers,” Mathews says. “This investment in Arroweye is another example of BVP’s focus on technology-enabled services and we are proud to support such a great company in our own backyard.”
Arroweye provides print-on-demand technology that enables consumers to customize greeting and gift cards on a retailer’s web site. Shoppers can purchase a retailer-branded card, choose any dollar denomination and customize it with photos and messages. Arroweye’s business model is to provide its technology to retailers at minimal cost in exchange for a share of revenue from each card sale, Arroweye says.
The $14 million in venture capital marks Arroweye’s third round of financing, which now totals $20 million, Mathews says. The first round was an investment by Harry & David, and the second was by a group of individual investors, he adds.
Other retailers that use Arroweye technology include 1-800-Flowers.com, Napster, eBags.com, Overstock.com, Waterford and Papa John’s.