The May Report: 12/14/2011: Logan LaHive’s Belly, fka BellyFlop,, has been funded by Lightbank for an undisclosed amount, most likely in their sweet spot range of $1MM and it was featured today in TechCrunch, but I’m confused because at the CEC Momentum awards dinner on Oct. 6th, Logan told me he was talking to Lightbank, but in the TMR archives, on September 2nd, I printed a list of the Lightbank portfolio taken directly from their website and BellyFlop was there, so were they deliberately stalling off the “official” announcement of funding? — Now I really don’t know WHEN Belly got the money; A great deal of material from the CEC Start-up panel and speakers today with 250 attending so I’ll be up late: 10 things from today: 1. Kevin Willer and the CEC has moved out of the Aon bldg to 222 W. Hubbard where they’re renting desks; Viewpoints, TechWeek, Built-in-Chicago, Cheeky Chicago are in the same bldg; 2. The big question –unanswered — is where is the 50k sf Tech Center that Moog, Willer, Pritzker and others have found — they are waiting to sign the lease, but the location is a closely held secret; 3. I didn’t know that New World Ventures put $20MM into Facebook a few mos. ago — at what valuation??!; 4. Matt McCall says there were 13 venture funds which did one deal this year locally but it will be down to 7 or 8 funds next year — and Calpers has cut their venture investing from 7% to 1%! — meanwhile seed and angel deals are on the rise; 5. Brett Goldstein, Chief Data Officer at the city says that the city’s recently put an unprecedented amount of data on the net and is looking at Mongo database; 6. Neal Sales Griffin of Code Academy says that half the students are flying in from elsewhere; 7. Brittany Laughlin says gTrot’s part of an 11 company venture or seed accelerator in the offices of Lightbank at 600 W. Chicago; 8. Chuck Templeton says 2011 was the year we got the chip off our shoulder in Chicago — “we are who we are”; 9. Matt Spiegel, now of Tap Me, says we’ll see 2 new IPOs in 2012 from unexpected places; Harper Reed declared to be the coolest tech guy and much more to come…

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TABLE OF CONTENTS

The Scoop section:

– TechCrunch on Belly, fka BellyFlop, getting Lightbank funding
– Thursday, Dec. 15: EFactor Presents: Angel Investing: The Inside Scoop which makes four good events Thursday night and I’ll try to get to three of them — SEMPO, Lean Start-up finalists, and this
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The Scoop section:

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TechCrunch on Belly, fka BellyFlop, getting Lightbank funding

techcrunch.com/2011/12/14/lightbank-backs-belly-a-customer-loyalty-and-rewards-platform-for-local-businesses/
Comment
8
Lightbank Backs Belly, A Customer Loyalty And Rewards Platform For Local Businesses
LeenaRao
posted 8 hours ago
8 Comments

A new Chicago-based startup is emerging today as a contender in the local business customer loyalty and rewards space. Belly (formally Bellyflop) is hoping to replace those old punchcards you receive at local merchants. And the startup is debuting with an investment from Lightbank, the venture firm founded by Groupon co-founders Eric Lefkofsky and Brad Keywell. While the exact amount of the investment was not disclosed, we understand it is in the seven-figures.

Belly wants to reinvent customer loyalty rewards through gamification and digital check-ins. But the startup has a slightly different take on how to achieve this. Here’s how Belly works. Belly offers a quick-setup, plug-and-play rewards platform to merchants. Part of this is an in-store iPad (which Belly supplies) that is used to validate paying customers right at the point of sale, and serves as a check-in point. Belly will also train employees to encourage them to participate in the program.

Merchants pay a monthly subscription unlimited Belly cards to hand out to customers, in-store marketing materials and secure access to customer data that reveals sales, points and redemption data, as well as insights into foot traffic and card usage patterns. Businesses can even use Belly data to send out push-notifications about exclusive promotions and other rewards to Belly customers.

On the consumer side, to check in, customers can scan their smartphone at an in-store iPad POS and with each check-in, you get closer to a specific milestone, and reward (as stipulated by the business). You simply scan a Belly card (provided by the merchant), or use Belly’s iPhone or Android Apps on the businesses’ Belly iPad app (which sits next to the register). Once you check-in you accumulate points, and can start earning rewards.

On the Belly mobile apps themselves, you can simply open the app and see a list of merchants that are Belly users by your location. The app completely replaces the merchant card at all of these businesses. With the Belly card, you have one universal rewards card (that is attached to your email) which can be used at all participating Belly merchants.

As co-founder and CEO Logan LaHive explains, consumers don’t want to carry several different cards, and businesses need a loyalty system that everyone can use. And businesses are able to tailor their rewards program.

Currently rewards at businesses range from a comic book store that offers customers a chance to punch the owner in the stomach, to a bakery that rewards customer 10 minutes all you can eat cupcakes. You can arm wrestle a sandwich restaurant owner or ride along in a food truck that will let its best customers “egg” the truck as it drives by. Belly works closely with each individual business to ensure the rewards are unique and personalized to that business.

Currently Belly already has been installed at 285 businesses in the Chicago area and nearly 50 new businesses are being added to Belly every week, along with 500 new users a day. In just 12 weeks since its pilot launch, Belly has more than 18,000 users and 50,000 check-ins. LaHive says that many of the stores are seeing more check-ins through Belly than Facebook, Foursquare and Gowalla combined. Belly plans to expand nationally in the next few months.

One of the added bonuses for businesses is that they can see when each customer is checking-in, how often and more. Businesses can get a clear view of their most loyal and valuable customers. another data area where Belly may expand into is transaction data. Currently the app doesn’t track what the customer actually bought but is looking to integrate with Point of Sale systems in the future.

Belly faces competition LevelUp, Perka, PerkVille, PunchTab and others.
Tags: belly
Elyse Obron · Chicago, Illinois
Check It Out!

Reply · 8 ·
· 8 hours ago
Brittany Laughlin · Founder & COO at Gtrot
Big opportunity – definitely a great team to execute on it. Service is very useful in Chicago! Congrats to the team!

Reply · 3 ·
· 8 hours ago
Frank Muscarello
Great team which will definetly hit this one out of the park.

Reply · 2 ·
· 7 hours ago
Brian Clancy · CEO & Founder at Wide Area Media, LLC
Sparkbase out of Cleveland has already beat them to the punch…better execution by far as well.

Reply · 1 ·
· 8 hours ago
Jared Epicpower · DePaul
Congrats you guys. I like the new name.
Christopher Ingebrigtsen ++.

Reply · 1 ·
· 8 hours ago
Anthony Lazaro · Washington, District of Columbia
Sounds complicated / ahead of its time in terms of the gamification piece for small businesses. Their slogan is ‘Making Customer Loyalty Easy’ but physical punchcards are easier than this solution (less counter space, no employee training, etc.).

This solution / setup reminds me more of Shopkick, who targets popular chains, than the other dozen or so digital loyalty solutions already in the market serving small businesses.

Reply ·
· 8 hours ago
Marvelle JayChizza Ballentine · Top Commenter · SUNY Buffalo
Hopefully they’ll secure first mover advantage. I specifically know a couple of teams who are working on this problem. Great product nonetheless. Practical and useful.

Reply ·
· 9 hours ago
Jose Vieitez · Stanford University
Training stores to use iPads? That’s basically opening the door for Square to swoop in and take over those stores. But interesting strategy.

Reply ·
· 4 hours ago
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Thursday, Dec. 15: EFactor Presents: Angel Investing: The Inside Scoop which makes four good events Thursday night and I’ll try to get to three of them — SEMPO, Lean Start-up finalists, and this

www.efactor.com/angelinvestorchi
EFactor E.vents
Perhaps our tool with the fastest payback. No matter how wired we all are, amazing connections rely on chemistry and no where does chemistry happen faster than when you meet face to face.
EFactor Presents: Angel Investing: The Inside Scoop
—————————————————-
Date:
Dec 15, 2011 6:30 pm – 9:30 pm
Venue:
Much Shelist
191 N. Wacker, 18th Floor
Chicago, Illinois 60606
United States

Fee:
$15.00
Agenda:

Note on Pricing:

Early Bird Special – $10 (Ends November 22nd, sign up early!)

Regular Price – $15

Price at the door $20

6:30pm – 7:00pm Event Start/Networking

7:00pm – 7:20pm Keynote Speakers

7:20pm – 8:00pm Panel Discussion

8:00pm – 8:30pm Audience Q&A

8:30pm – 9:00pm Networking Hour

9:30pm Event Ends
EFactor Presents: Angel Investing: The Inside Scoop – Chicago

The hardest part of starting a new business is finding the money to fund it. You could turn to friends and family but at most you might be able to get a few thousand dollars. That’s not going to work and good luck getting a bank to loan you any money. Banks are notoriously stringent when it comes to small business loans. 41 percent of small business owners said they had trouble getting adequate financing in 2010 according to the National Small Business Association.

Before you give up on your business idea you need to attend EFactor’s presentation on Angel Investing in Chicago. Angel Investors are generally affluent, retired entrepreneurs who provide capital for business start-ups just like yours.

As an added bonus EFactor has discounted tickets to this event if you register by November 22nd. Don’t delay there are a finite number of tickets being sold for this event. Don’t miss your chance to change your life and become a successful business owner! To purchase tickets or find out more about this meeting click here.

About the speakers:

Gregory Grove concentrates his practices on private equity, venture capital and corporate transactions and counseling. He advises funds, boards of directors, management teams, underwriters, and private and public companies at all stages of development, from entrepreneurial to established, operating in a wide range of industries. Greg counsels clients in all aspects of private equity and debt transactions, mergers and acquisitions, venture capital investments, pubic offerings and intellectual property matters. In addition, Greg advises companies on general corporate and ordinary operations matters, including company and subsidiary organization, contract drafting, equity and bonus compensation, and negotiations with executives and others.

Michael Gruber has extensive experience with early stage investments particularly in the information technology, material science, and energy sectors. Mr. Gruber is a Partner of Independence Equity, an early stage venture capital fund as well as a Partner and Co-Founder of G4 Capital LLC and VentureLab, where he works with emerging growth companies in interim executive capacities on go-to-market and financial strategies. Mr. Gruber’s prior industry experience includes key operational roles in high growth corporations (Koei Corporation, Intuit, InsWeb, Silicon Investor), two of which went public and one of which was acquired by a strategic investor. Mr. Gruber had founded Cornerstone Angels and Keiretsu Forum Chicago/Midwest, private investment organizations of high net worth investors focused on growth stage investments. Mr. Gruber was also a Director of Taproot Ventures, an early stage investment affiliate of the Harbour Group, an investment and operating holding company. Mr. Gruber currently serves on the Board of Directors for ACG Chicago as Co-Chair of the Venture Network and Cleantech Network, and serves on the Board of Advisors of Factory Physics, Inc., and the Institute for Sustainability and Energy (ISEN), NUvention Energy at Northwestern University, and DailyDAC, Inc. Mr. Gruber received a BA in International Relations from the University of Pennsylvania, and an MBA from the Kellogg School at Northwestern University. Mr. Gruber is also a frequent speaker and panelist relating to entrepreneurship and venture capital.

Ronald L. Kirschner, M.D. is President of Heartland Angels, Inc. Dr. Kirschner has a broad background in healthcare, start-ups and private equity. Dr. Kirschner practiced medicine for 23 years and anesthesia for 17 of those years. He was President of Irving Park Chapter of the Chicago Medical Society. He taught at the Illinois Masonic Medical Center and was an Assistant Professor at Southern Illinois University School of Medicine and has taught at the Illinois Institute of Technology in the Finance Department. While practicing medicine, he started 3 companies of his own in the healthcare field dealing with Nutrition, Managed Care, and Utilization Review. He has been a consultant on healthcare issues to the State government and on funding and market strategies to both entrepreneurs and early stage companies. He was the VP of Technology Development for CDIB Biotech, Inc., a Midwest Biotechnology Venture Fund (started by China Development Industrial Bank) where his roles was to assist in the discovery and funding of early stage biotechnology in the Midwest and Canada. He was principal in the funding decisions concerning, among others, Aegera Therapeutics, Immunicon (now Veridex), and VitaGen (now Vital Therapies, Inc.). He was active in advising local companies, e.g., Neuronautics, on options relating to funding opportunities and was involved with the Board of Directors for Phytoceutica. Dr. Kirschner received his BA from Beloit College and was awarded his Medical Degree from St. Louis University. He has completed residencies in Emergency Medicine at the University of Chicago and in Anesthesia at West Virginia University. He received his MBA in Finance from DePaul University.

Brad Morehead is CEO of LiveWatch Security, the parent company of SafeMart, Bolster Security and Able Security. As one of the fastest growing home security companies in the country, LiveWatch Security is revolutionizing the home security industry with its unique Plug & Protect™ security system that uses an internet-based delivery model.Prior to Bolster, Brad was CFO of Feldco Factory Direct, a fast-growing, entrepreneurial company that is the Midwest’s leading home renewal company and winner of the BBB Torch Award and two-time National Window & Door Company of the Year. Before joining Feldco, Brad worked with Friedman Fleischer & Lowe LLC (“FFL”), a San Francisco-based, middle-market, private equity firm and in investment banking with Goldman Sachs (New York) and Donaldson, Lufkin & Jenrette (Chicago). Brad serves on the board, has been a founding investor or was on the startup team for a variety of other companies from financial services to consumer products. He also co-founded Wildcat Angels and Kellogg Entrepreneurs’ Organization. Brad received an MBA with highest distinction from the Kellogg School of Management at Northwestern University. Brad completed his undergraduate degree with high distinction in Finance at Indiana University.On a personal basis, Brad played football at Indiana University (briefly), ran a marathon (not so briefly), completed the Alcatraz triathlon and has been a winning contestant on both The Price is Right and Wheel of Fortune.
Dr. Matthew R. Matigian, CEO, Blue World Asset Managers, Ltd., is a serial entrepreneur with over 20 years experience in managing, investing in and consulting for a very wide range of businesses spanning many industries and business situations from start-up to turn around and exit through his company, Blue World Asset Managers, Ltd. Blue World Asset Managers, Ltd. coordinates professional services in consulting, funding, due diligence, and management synchronizing the personal and professional elements of an entrepreneur’s estate plan, business model, structure, tax, risk management and asset protection and growth strategies.Dr. Matigian has extensive experience evaluating both public and private investment opportunities. He is a prolific blogger regarding politico-economic issues and economic report analysis. He lectures on business and investing and is nearing completion of a book titled Money as a Second Language. He is a regular radio guest on CBS’s Noon Business Hour. In addition Dr. Matigian currently serves on or participates in: Irish Angel Investment Group, Notre Dame business plan competition judging, Illinois Institute of Technology’s Interprofessional Projects Program judge, Diocese of Peoria investment committee member, and Member of the Alliance of Merger and Acquisition Advisors organization.

Karin D. O’Connor is founder of Perimeter Advisors, an advisory firm that assists owners of promising mid-market companies with planning and execution of value enhancement strategies. She joined Hyde Park Angels, a Chicago-based angel investment network, in 2009 and was named Interim Managing Director in October 2011. She is active on the group’s Deal Screening Committee and Business Services/Financial Services Ambassador Group. To date, she has invested in five deals with HPA, and she currently serves as the group’s representavie on the Board of portfolio company FeeFighters. Since beginning her career at Continental Bank in the 1980′s, Ms. O’Connor has invested in and advised entreprenerus in a variety of industries that includes financial services, business services, technology distribution, health care, and manufactoring. She has invested at all levels of the capital structure – from senior debt to mezzanine, venture leasing, and equity – and in companies ranging from early stage to mature. She received her BA in Finance from the University of Illinois, where she graduated magna cum laude and was elected to Phi Beta Kappa. She also studied European history and civilization at Salzburg College, Salzburg, Austria. She earned her MBA from Northwestern University’s Kellogg School of Management, where she was an F.C. Austin Scholar and was elected to Beta Gamma Sigma. She received a CFA (Chartered Financial Analyst) charter in 2007.

Just a tip: If you are planning on attending more than one of our events this year (each city hosts at least six events), why not get our Events Access package for only $45. Enroll today and save!

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