Silicon Valley’s FreeMonee Network has just raised $34 million and it’s ready to start giving it away. The software company works with banks to analyze data and predict consumer spending patterns, and then gives consumers “free money” in their bank accounts to spend at selected retail establishments. It looks like a new twist on the coupon craze, but FreeMonee says it’s different because merchants do not have to discount their products.
Capital One recently said it will be working with FreeMonee to offer personalized deals to its credit card customers. The bank said the offering will help its customers “to fully experience the power of mobile and electronic commerce.” When Capital One credit card customers receive an email from the bank, the deals in the email will already be loaded into their credit card accounts. The deals that a certain customer gets are related to his or her previous spending patterns on that credit card.
FreeMonee’s investors include Charles E. Ryan, of UFG Asset Management, Opus Capital Ventures, Sutter Hill Ventures, Redpoint Ventures, and Pinnacle Ventures. The company has raised a total of $45 million so far.
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