Portland-based CashStar, a digital gift card and incentives company, announced today it has raised $5 million in funding to help drive new growth. The financing round includes investor Intel Capital, along with existing investors Passport Ventures, FTV Capital and Steven Boal, CashStar co-founder and chairman and president and CEO of Coupons.com Inc.
The funding will help the company expand its digital gifting services to include more mobile and social media options, which will increase sales for its more than 250 clients, according to a press release. The company handles electronic gift cards for Best Buy, Gap, Staples, Starbucks, The Home Depot and Williams-Sonoma, among other retailers. Last year, it raised $28 million in venture capital and expanded into Canada.
The company expects rapid growth in the industry: The digital gift card market is expected to hit $11 billion by 2014, and one CashStar client has seen its mobile offerings grow 240% in one year.
Mainebiz named David Stone, CEO of CashStar, a 2012 Business Leader of the Year.