Millennials are Gen Z are strongly committed to social causes and to driving their spending to companies that reflect their values; 40% of millennials have started a relationship with a company based on the social impact they have. Combined, the spending for millennials and Gen Z exceeds $2.65T. It’s become critical for brands and retailers to align with these preferences in order to capture share within this burgeoning segment. Beam Impact is a platform that allows consumers to direct a portion of their online spending to high-impact not-for-profits for free. This is done in one of two ways: the Beam app, which offers a curated list of belief-driven brands, or through Beam’s checkout solution that provides brands with the infrastructure to donate a portion of the sale to a non-profit of the consumer’s choice. In order to maintain engagement and transparency, Beam provides real-time tracking of the impact a customer’s spending has had. Analytics show that the use of the platform drives a 15% lift in AOV, 11% improvement in conversion, and 30% increase in repeat orders on a quarterly basis. Beam, founded in 2017, works with 100 brands including Ministry of Supply, Knickey, Rainbow, The Grey Dog, and Frankie while supporting 500+ non-profits.
AlleyWatch caught up with Beam Impact Cofounder and CEO Viveka Hulyalkar to learn more about the business, the company’s strategic plans, latest round of funding, and much, much more…
Who were your investors and how much did you raise?
We raised a $13.3M Series A led by Index Ventures with participation from previous investors Ulu Ventures and HearstLab as well as strategic angels like Brian Long and Andrew Jones (cofounders of Attentive), and Ruchika Julapalli (Head of Product at Everlane). This brings our total funding to date to $15.4M.
Tell us about the product or service that Beam Impact offers.
We’re on a mission to create what loyalty would look like if it were designed for today’s customers in order to shift $10B from brands to high-impact nonprofits. For consumers who feel powerless about daunting social issues, particularly Millennials and Get Z, Beam is a way to make a measurable impact every day. For e-commerce brands facing all-time highs in competition and difficulty standing out amid growing greenwashing, our platform builds community and lifts loyalty with customers over shared values.
As a B2B2C company, there are 2 ways to use Beam: by downloading our iOS or Android app to discover mission-driven brands in our ecosystem (filtering for causes that matter to you and things you need to buy), or by using their e-commerce integration to make an impact directly while checking out with brands on Beam. Beam pairs partner brands with vetted nonprofits reflecting their values and lets customers choose a nonprofit while checking out, where the brand donates part of their purchase at no extra cost.
Our platform provides real-time transparency at every point in the consumer journey into how the customer’s dollars are going towards tangible goals, like funding 100 hours of free therapy for Queer and Trans teens in their area. As customers become progressively more invested in helping organizations reach their goals, they concentrate more of their spending with brands on Beam. We’ve already demonstrated that our platform drives a 15% lift in average order value, an 11% improvement in conversion, and a 30% lift in quarterly order frequency for partner brands.
By providing the technology and connective tissue between brands, consumers, and nonprofits, we’ve achieved tremendous impact, like funding more than 5 million meals for families experiencing food insecurity, preventing over 1 million pounds of CO2 emissions, and more. As impact becomes a bigger part of users’ everyday lives, 70% go on to support nonprofits they discovered through the Beam platform with their own time, money, and voice.
What inspired the start of Beam Impact?
At age 15, I started a nonprofit where I secured sponsorship from the NBA to install $1M of solar panels in local schools. This experience made me realize that brands I loved were investing tremendous amounts in issues that I cared about that I previously had no awareness of. Later while serving as a consultant at McKinsey, I worked with retail brands struggling to hang onto customers as traditional retention was failing. Through that work, I learned that 70% of Gen Y and Z customers are so anxious to make a bigger impact, they’d even pay more for a brand they believe is more socially responsible. As I started to identify a major opportunity, I connected with our Cofounder & CTO Alex, a fellow former nonprofit founder who was an early engineer at Tinder and worked on developing many new features on the iOS team. Together, we cofounded Beam to connect people anxious to make a bigger impact in their lives with brands that have the resources and intent.
How is Beam Impact different?
We’re the first and only B2B2C model that both helps people discover ways to make a greater impact in their daily lives, at no extra cost, and enables mission-driven brands to build greater loyalty by giving via a checkout integration.
We’re the only platform that enables customers to track exactly how their dollars are going towards tangible outcomes, both personally and alongside the rest of the brand community.
We’re the only platform that vets the nonprofits we work with to ensure they’re highly rated and curates our network to reflect brands that are truly walking the walk—not just greenwashing or turning their logo rainbow for pride.
We’re the only platform where nonprofits presented to a customer can be local to them where they are.
What market does Beam Impact target and how big is it?
Ecommerce enablement and retention- global TAM is $20B using bottoms-up analysis
What’s your business model?
Usage-based SaaS. Brands pay Beam for the volume of usage they’re seeing via a tiered subscription model. The model is designed to ensure that the brands are always seeing positive ROI, relative to the combined cost of what they’re paying Beam and the cost of donations.
What are your post-COVID office plans??
We are remote-first with an optional NYC HQ. We hire across the US and have about half the team in the New York area.
What was the funding process like?
Fast! We’re so excited to see how strongly our model resonated and are thrilled to be working with a team that so fundamentally understands this space, our product, and our mission in Index.
What are the biggest challenges that you faced while raising capital?
The biggest challenge was the lead-up to the raise- our team worked really hard to achieve metrics that would position us to succeed. It wasn’t easy but I’m so proud that we were able to open the raise from a position of strength.
The biggest challenge was the lead-up to the raise- our team worked really hard to achieve metrics that would position us to succeed. It wasn’t easy but I’m so proud that we were able to open the raise from a position of strength.
What factors about your business led your investors to write the check?
From my conversations with our investors, it seems like a few dimensions stood out: (1) our momentum—we achieved 150% month-over-month in 2021; (2) the breadth and depth of partnerships, and the replicable sales process we’ve built; (3) founder-market fit–Alex and I have deep experience in not only impact but also consumer tech/retail; (4) visibility into the direction of the market–our investors are seeing where the market is headed and see tremendous opportunity for us
What are the milestones you plan to achieve in the next six months?
Growing our team by at least 6x- we’re hiring aggressively! We’ll also be expanding our network of leading brands and nonprofits and launching new features.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
There are so many more types of financing instruments available that might be right for your business- check out SBA loans, venture debt, services that allow you to finance against your revenue, and more. If you want to raise venture, timing is key- talk to founders or investors in your network to understand what you should be aiming for to put the best foot forward.
Where do you see the company going now over the near term?
Helping more brands win by giving and more people make an impact in their everyday lives.
What’s your favorite outdoor dining restaurant in NYC?
Jajaja Plantas Mexicanas.
