Social Network Claim Secures $4 Million to Power Reward-Based Interaction

Claim, a revolutionary platform blending rewards and social networking, has successfully raised $4 million in a seed funding round, spearheaded by Sequoia Capital. The startup’s core mission revolves around transforming shopping into an enjoyable, rewarding, and communal experience. Initially launched via an exclusive beta in January, the app is presently tailored for university and college students within the vibrant community of Boston.

At the heart of Claim lies its innovative functionality, enabling users and their friends to earn cash backs, swap rewards, and collectively redeem them. Unlike conventional social networks centered on manufactured content and reposts, Claim prioritizes real-world value and shared experiences.

Founded by CEO Sam Obletz and CTO Tap Stephenson in November 2021, the startup’s inception was rooted in their explorations of digital ownership. Meeting as roommates at Yale and later reconnecting at Harvard Business School, the duo’s brainstorming sessions led to the conceptualization of Claim, redefining the essence of online ownership.

Discussing their vision, Stephenson emphasized the quest to eliminate barriers to digital ownership. He elaborated, “We started Claim because we were really interested in what it meant to own something online. We saw this in web3 and we see this in sports, which is in collectibles. There’s always been places where you can own something online, but there was no generalized form of it. And so we started asking: What would it mean to remove all friction to actually owning something online? And that over time, led to Claim.”

Initially conceived as a platform linked to users’ credit cards, enabling real-world use of rewards, the idea soon expanded to facilitate sharing and exchanging rewards among friends. The founders realized they were creating a unique social mechanism absent in today’s landscape.

Claim introduces consumers to a novel experience, akin to trading cards but tailored for brands. Transforming consumer rewards into a multiplayer game, the startup empowers users to embark on shared experiences while optimizing savings.

Within Claim’s ecosystem, users can generously share special rewards from beloved brands with friends who haven’t explored them yet. Whether it’s treating them to a delightful acai bowl from a favored coffee shop or gifting a trendy t-shirt from a cherished streetwear brand, the platform encourages users to exchange rewards, discover new places together, and earn status by engaging with various brands. Additionally, Claim orchestrates a weekly event termed a “drop,” where users simultaneously unwrap new rewards, affording them the choice to redeem, gift, or trade these rewards among friends.

While Claim primarily aims to enhance the consumer experience, the startup is equally dedicated to revolutionizing how marketers and brands connect with potential customers. Unlike inundating individuals with conventional advertising on major platforms like Google, Instagram, or TikTok, Claim introduces consumers to brands through rewards shared among friends. The startup firmly believes in the efficacy of product trial experiences compared to traditional ads when targeting new customers.

CEO Obletz highlighted the platform’s value for marketers, stating, “We make it so much easier for marketers. We can find customers based on where they shop and where their friends shop. If they haven’t gone before, we can give them a reward to try their brand for the first time, which is super critical because we’re bringing in real new customers, and we can show them how effective that reward was based on spend. And so it’s just this insanely simple marketing tool that we’ve created.”

Claim has cultivated partnerships with a wide spectrum of merchants, ranging from Fortune 500 entities like PepsiCo to local culinary hotspots such as Boston’s Life Alive.

The startup’s early traction has been highly promising. Partners leveraging Claim’s platform achieved exceptional results, with one partner surpassing 97% of their new customer target within half the anticipated timeframe. Another partner experienced a remarkable 35% repeat customer rate within just 30 days.

Focusing its attention on Gen Z, Claim views this demographic as an ideal user base due to their preference for authenticity over traditional advertising. With over 10,000 users in Boston, the startup plans to continue refining its approach within this market before contemplating nationwide expansion.

Regarding the recently secured funding, Claim intends to deploy it strategically by expanding its team, prioritizing engineering for testing and learning, and eventually venturing into new markets. The startup’s seed round closely follows its earlier unpublicized $2 million pre-seed round led by Susa Ventures and Box Group. Notable participants in Claim’s funding rounds include 6th Man Venture, Reflexive Capital, A* Capital, GSW Ventures, The Kraft Group, among others.