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eCommerce - Wednesday, February 20, 2008

Jackpot Rewards Launches Having Raised $16.7M

Founded 4 years ago, Jackpot Rewards is just launching an e-commerce rewards site whereby members pay a $3 weekly subscription fee and gain access to shopping rewards on the Net, amongst other site benefits. Members are entered into 3 weekly jackpots of $100M-$150M, with an automatic giveaway of $1M every week. The $1M give-away is one of the best chances around to win guaranteed money. The company says it gives away 50% of its profits to charity. At launch, Jackpost says it has signed up 550 participating retailers who will hawk the program.

Last June Jackpot raised $16.7M in Series A and has ramped up to 55 employees. Investors include former Fidelity Investments manager Peter Lynch and Boston advertising executive Jack Connors.

Even given $16.7M in funding, the company will clearly run out of cash soon if it does not get heaps of paying members on-board. The company acknowledges that it will need a minimum of 330K members shortly. Confidence for the system must draw from the popularity of state lotteries.

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