Business incentive and review company EyeRate of Elk Grove has raised $1.7 million in an investment round led by Santa Monica-based early-stage investor Mucker Capital.
EyeRate will use the investment to expand the use of its customer comment tool, CEO and co-founder Ray Weisberg told the Business Journal.
The company now has 22 employees, and the new money will likely build that up to 40 people, he said.
EyeRate allows employees to earn bonuses, businesses to grade their customer service and customers to earn rewards, through a text-based or web-based interface tied to a business's point-of-sale system.
EyeRate was founded 2019 by Weisberg and Michael Arredondo. The company was based in Arredondo’s garage in Elk Grove for its first year.
Arredondo, who is chief growth officer, said EyeRate has users in 45 states, and the new money will help it expand and add new features to benefit business owners, employees and customers. The web-based application doesn't require users to download an app on their phones.
Before founding EyeRate, both founders worked in low-wage jobs, Weisberg said.
“We didn’t feel like we got the recognition we deserved,” he said. They designed their web-based application to allow good reviews to earn employees a bonus. A review can also get customers discounts.
“Incentives boost engagement,” Weisberg said.
EyeRate has more than 1,300 business customers, who pay a monthly subscription between $200 and $500, he said. The company’s largest client sectors are health and beauty shops, dispensaries and auto shops.
EyeRate has been focusing on franchises, so it often gets referrals for new customers from existing customers in the same franchise, Arredondo said.
EyeRate currently interfaces with 40 point-of-sale companies that take card payments at retailers, and that connection allows for reviews to post in real time, Weisberg said.
The company started with a focus on health and beauty stores, and it has relationships with Massage Envy and European Wax Center, but during the pandemic it has seen growing interest from dispensaries, Weisberg said.
EyeRate previously raised $100,000 as a graduating venture from Jason Calacanis’ San Francisco-based startup incubator The Launch Accelerator in 2020. EyeRate has also received economic development grants from the city of Elk Grove.
