GroupGifting.com, a Hauppauge-based social and mobile gifting start-up, recently raised more than $1 million in an initial round of angel financing, the company said.
The start-up, which works with retailers and provides a mobile platform to sell gift cards, began meeting with potential investors this past November after officially launching during the summer, said chief executive Tyler Roye. Before that, Roye spent about a year developing the smartphone application for GroupGifting.com with his team.
"In fall of 2012, as we started to see the amount of interest we were generating we started to realize this is bigger than what we anticipated," Roye said. We realized the opportunity was big. . . we said 'Alright, we should bring in some outside funding.' "
The $1 million that the company raised came from a "handful" of investors, one of which was the Long Island Angel Network, Roye said. He declined to specify how much was raised from each investor. Roye was formerly the founder of Invision.com, a Commack-based cloud hosting service that he grew and then sold in 2007.
Angel investments are made in start-up companies before they become profitable, and typically range from hundreds of thousands to the low millions.