Another social shopping application received some major funding this week. TreatFeed, a startup that is the cross between Groupon and Yelp, raised $5.4 million in funding led by Norwest Venture Partners.
TreatFeed, a word of mouth rewards system, is the creation of Brett Markinson and Konstantin Glasmacher. You might recognize those names because they are the same people who founded and ultimately sold the flash sales platform HauteLook to Nordstrom for $270 million.
TreatFeed combines deals from different businesses that are either local or online. Like a “Social Tree” users grow as a network earning points and money, when someone within their social group makes a purchase.
Before you get excited and think you have a way to pay your taxes, there is a runway before collecting any money. You need to have minimally 30 friends in your first generation of friends. Until then you still collect rewards as points. You can exchanged the points for goods and other discounts.
I can see right away the Darwin theory applies to this program. Like the Nordstrom sales people pool, the fittest and most aggressive “TreatFeeders” survive, making the most money off those at the bottom rung. I am sure the top “TreatFeeders” will have their bragging rights posted on TreatFeed’s home page.
Don’t get me wrong. I can view TreatFeed as a game. I am sure friends will be able to help each other earn points for money. The social shopping program is still in the incubator stage. With the recent funding, the program may evolve into something that is fun and rewarding for everyone.