New York-based Benjamin, which runs cashback reward programs, has raised $5.5 million in a round led by Singapore- and Helsinki-based Play Ventures. Other investors included German entrepreneur Anton Gauffin. Founded by Finland native Erno Tauriainen, the company’s backers include Singapore’s Antler, Santa Monica, Calif.-based Expert Dojo.
Obsessed with Winning
Tauriainen calls himself a “small town kid” from northern Finland with an obsession for winning. He first came to America as a teenager to play hockey, before returning to his native Finland to run a family business. But his heart was in America, as he “fell in love with chasing the American dream.” Eventually, when he was in his late 30s, he bought a one-way ticket to New York, and hasn’t looked back since.
The Finn launched Benjamin app last July, after a successful beta test with over 6,000 users and $25 million in transactions. Today, it connects nearly 100,000 brands, customers, and influencers with sharable cash rewards. Benjamin builds on a cashback app he initially built, called Spent. Spent aggregated over one million merchants and had a turnover of more than $3 billion, becoming one of the top cashback players in the country.
“Today, I have combined this cashback expertise to banking experience. I am building Benjamin Bank, which is a modern loyalty banking product for 30M American small businesses to get more new customers and save up to 30% on their business spending,” Tauriainen said on his LinkedIn page.
Monetization First
Benjamin uses innovative methods to drive adoption. It has, for example, used gamified the user experience, adding tiers, badges, and daily reward claims, to keep consumers engaged. Tauriainen says he started with monetization because he recognized the difficulties card programs and neobanks faced with conversion.
Commercial Real Estate
MacKenzie Companies
Law
Nemphos Braue
Financial Services / Investment Firms
Chesapeake Corporate Advisors
Commercial Real Estate
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Venture Capital
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Internet / Technology
Foxtrot Media
“Therefore, we started with a rewards-first approach to generate value for users and revenue for merchants. The next step is launching Ben One Debit and Credit Cards, offering unlimited, highest cash back in the market,” he said at the launch of Benjamin.
Tough Cookie
When Tauriainen came to New York, he had little money and no work visa. He got a consulting gig and a “O-1” visa for extraordinary ability, likely from his athletic performance. It took him some years to get into a “good spot” before turning an entrepreneur.
“If you can make it in New York, you can make it anywhere,” said Tauriainen, whose father was a refugee from the Soviet soldiers in Finland during World War II. He had heeded his father’s sage words: “Son, you can’t ever bring the silver medal to this house. You have to always bring the gold medal!”
