Lubavitcher Raises $60 Million for Tech Company

Swagbucks, a Los Angeles-based web-rewards company founded by Lubavitcher Yosef Gorowitz, announced that it has raised $60 million in venture capital from investment firms amid exponential growth over the past year. The company also announced that it has hired a new and experienced CEO.

From Business Wire:

Swagbucks, the web’s leading rewards community – and its parent company, Prodege LLC – announced its first external capital round with a direct investment of $60 million from Technology Crossover Ventures (TCV). Swagbucks and Prodege executive chairman Chuck Davis will add the role of chief executive officer while founding CEO Josef Gorowitz becomes president.

Swagbucks rewards its members for everyday web discovery activity – including searching, shopping, entertainment, discounted offers, surveys, and games – delivering a robust platform for brands, advertisers, and marketers to establish valuable relationships with motivated consumers. The company has distributed over $60 million in free gift cards to consumers since its 2008 founding. Swagbucks offers gifts cards from over 300 ecommerce stores including Amazon, Wal-Mart, Target, Starbucks, and Paypal.

“Swagbucks first caught my interest in 2012 when I observed their impressive, entrepreneurial growth and diversified revenue model,” said Davis, who joined Swagbucks as executive chairman in January 2013. “Swagbucks has always put the consumer first by helping households get a little extra back and I am proud to build on that wonderful mission. Furthermore, bringing in TCV as the company’s first strategic investment partner and building on their experience in scaling leading digital brands is a good fit for Swagbucks and its profitable business.”

Davis was chairman & CEO of Fandango, the leading online movie ticket and entertainment site. While there, Davis oversaw its mobile launch and expansion making Fandango one of the most popular mobile ecommerce sites online. Comcast Corporation purchased Fandango in 2007. Previously, Davis was president & CEO of Shopzilla (formerly BizRate) through its $525 million sale to the E.W. Scripps Company. Davis currently is a venture partner at Technology Crossover Ventures and serves as executive chairman at The Teaching Company.

Additionally, Davis serves as a director at Boingo Wireless, is the immediate past international chairman of the Young President’s Organization, and is an entrepreneur in residence at Harvard Business School. Davis had prior executive stints at The Walt Disney Company (president, E-Commerce), News Corporation’s TV Guide, and Time Warner in addition to serving on the Brown University Corporation and the ecommerce industry’s Shop.org board of directors.

“TCV strives to back great entrepreneurs, providing tremendous value to online customers,” said Jay Hoag, founding general partner at Technology Crossover Ventures. “We are delighted to be investing behind him again, as he takes the helm at Swagbucks and builds upon the great work done at the company to date.”

Swagbucks has been profitable since 2010 and had $53 million in 2013 revenues, up 51% from 2012.

“Swagbucks has built a strong and successful business in a relatively short period of time,” said founder and president Josef Gorowitz. “We are thrilled to welcome two proven new additions to the team with Chuck and TCV as we strategically scale Swagbucks to new heights in the years ahead.”