In 2014, consumers spent a whopping $6 billion on electronic gift cards, while total gift card sales were roughly $124 billion. CashStar hopes to capitalize on the "e-gifting" growth potential. CashStar, an early entrant to the digital gift cards and incentive space, has now raised $15 million of Series D capital led by FTV Capital. Total capital raised is now $50 million since its 2007 launch, and the company plans to use the fresh funds to continue to build out its tech team.
The fresh infusion of $15 million in venture capital, which brings the total raised to $50 million since its 2007 launch, will allow the company to invest in product development and client services, Kaplan said. When it comes to technology companies, that basically means investing in people, he said. Kaplan estimates CashStar will add between 30 and 50 employees, mostly in technical positions such as software engineers and project managers, in the next year and a half.