As part of our Sacramento Inno coverage, the Business Journal for the first time compiled a list of Startups to Watch in the new year. These startups are poised to make big moves, either in growth, funding, technology or development. We're highlighting 13 startups, generally with fewer than 100 employees, about 5 years old or less and that have raised less than $50 million. The group includes a diverse mix of companies throughout the region.
Startup to Watch: EyeRate
The founders of business incentive and review company EyeRate worked low-wage jobs where they faced customers. They were literally the representatives of the companies where they worked, but they didn’t feel they got rewarded for offering great experiences to customers.
So, in a garage in Elk Grove, they developed a web-based application to allow good reviews to earn employees a bonus in their paychecks. A review can also get customers discounts, through a text-based or web-based interface tied to a business's point-of-sale system.
The premise of the business is that incentives boost engagement, both for employees and customers. EyeRate in August 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.
EyeRate was founded 2019 by Weisberg and Michael Arredondo. The company was based in Arredondo’s garage in Elk Grove for its first year. 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.
EyeRate has more than 1,300 business customers, who pay a monthly subscription between $200 and $500, Weisberg 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 web-based application doesn't require users to download an app on their phones.
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.
