Snappy, the company revolutionizing corporate gifting, announced that it had secured $9.7 million in funding to date after raising $8.2 million yesterday in Series A funding led by 83North with participation from Hearst Ventures.
Snappy was founded in 2015 by Israeli entrepreneurs Dvir Cohen and Hani Goldstein, with headquarters in New York City. The company allows employees to choose their favorite gift from a curated collection of personalized options, including local experiences like cooking and yoga classes, global getaways, and trending products like Amazon’s Echo Dot and drones.
Snappy’s concept is that companies are looking for creative ways to reward employees, but gift cards, paperweights, and other generic corporate gifts don’t make employees feel valued.
With record-low unemployment rates and high-growth companies putting company culture front and center, the competition to retain talented employees has created the need to invest in a program that recognizes their efforts like never before.
Gifts are sent via email or text in a fun, innovative way and are sourced from leading brands and retailers, with prices ranging from $15 to more than $1,000.
“We help managers reward and motivate their team members without settling for an impersonal and boring gift card,” Snappy CEO and Co-Founder Hani Goldstein said.
“By combining the traditional thoughtfulness of gifting with the choice and simplicity of a gift card, Snappy creates a simple, personalized solution, ensuring each team member feels appreciated and valued for their hard work while creating excitement and improving company culture,” he added.
Snappy will use the capital to meet current clients’ incredible international and domestic demand, accelerate the product roadmap and expand its global footprint.
83North, a global venture capital firm, General Partner David Buttress said, “The value that Snappy creates within organizations excites us,”
“We followed Snappy from its early days and were amazed by the consistent and positive feedback from employees once they got the gift from their employers. That kind of change in attitude toward your employer is only possible thanks to the use of this technology, which the Snappy team built over the last few years.” Buttress added.
Ken Bronfin Hearst Ventures, senior managing director and head of international investments, said, “It’s never been more important to retain exceptional talent, and, as employee demand for recognition grows, the market for the solution that Snappy provides is unprecedented,” he added “not only has Snappy identified an underserved market, but the accelerated growth of the company proves that when done correctly, employee appreciation and gifting is vital for companies.”.
The Labor Department reported the number of American workers who voluntarily left jobs increased to 3.3 million in May 2018. Compared to monetary incentives, gifts help employees feel more appreciated.
According to the Journal of Economic Psychology, it takes twice as much money to increase employee happiness at the same rate as a tangible gift.
Global studies revealed that 79 percent of people quit their jobs, citing ‘lack of appreciation as the primary reason; one of the best ways to foster loyalty among employees is to recognize their hard work and dedication.
Snappy’s approach to corporate gifting provides a seamless process for managers, who see the immediate impact through a thank you note feature built right into the platform.