According to the US Chamber of Commerce, the corporate gifting market is expected to hit $306B in 2024. With the pandemic reducing in-person interaction between remote teams and clients, companies are looking for new ways to connect with employees and customers for relationship building. Giftpack is a corporate-focused gifting platform that was inspired by the founder’s own experience in choosing gifts to send to his long-distance girlfriend. The company uses a signature personality quiz that incorporates AI to provide optimal gift options within a designated price point from a selection of over 3.2M SKUs in its product catalog based on interest, traits, behavior, and more. Companies like Google, J.P. Morgan Chase, Meta, and Zappos are already using Giftpack to send tailored gifts to customers and employees across 220 counties with over 50,000 gifts delivered since the company launched a little over two years ago.
AlleyWatch caught up with Giftpack Founder and CEO Archer Chiang to learn more about the business, the company’s strategic plans, recent round of funding, and much, much more…
Who were your investors and how much did you raise?
Giftpack just closed its seed round led by Chang Hai Lin, bringing the total raise to date to $4.3M. The round also included participation from Tech Coast Angels, Chih Heng (George) Yeh, Christopher Yang, and Dr. Mike Cooney. Earlier investors include Accelerating Asia, Digital Garage Inc., Umami Capital (led by James Lu Morrissey), Shao-Hua (Nick) Wu, Hungwei (Teddy) Chen, Alex Miller, Draper Startup House, Katya Kohen, and Axxel Marketing.
Tell us about the product or service that Giftpack offers.
Giftpack AI is a leading AI-powered corporate gifting platform that helps companies like Meta, Google, Zappos, and 1,400 other companies create better relationships with their workers. It’s a simple process – someone is issued a personality quiz that learns their interests, personality, traits, preferences, behaviors, and more. Once the data is analyzed, our AI will compile every gift in our 3.2M product catalog under a designated budget and then present gifting options that align with the individual’s personality. The company takes gifting, a project that typically takes hundreds of hours and countless resources, to a task of only a few minutes.
What inspired the start of Giftpack?
I am a good engineer, but apparently a bad gift giver. Initially, I created the platform when I was in a long-distance relationship with my girlfriend and struggled to find her a gift. As a result, I developed an AI-backed program that would learn her interests from a personality quiz, within a specified budget, and search the internet for gifts that matched her profile. I then built out the concept to work in a larger capacity to address issues like gifting at scale for companies with global workforces.
How is Giftpack different?
Giftpack is revolutionizing corporate gifting by allowing companies to send individually tailored gifts to thousands of clients and employees around the world in seconds. Currently, companies are spending more than $100,000 on gifting annually; many of which are getting it wrong and wasting money on gifts employees and clients don’t want – or have no long-term impact. From ideation to delivery, Giftpack offers a gifting solution that removes the burden and time commitment that companies traditionally spend on these programs. In comparison to a traditional hand-picked process, Giftpack’s platform makes the process 95% more efficient by reducing workloads and providing valuable insights, while offering recipient interactions and key return-on-investment metrics.
Since its launch in the summer of 2020, the company has delivered over 50,000 gifts to employees/clients at more than 1,400 companies across more than 220 countries – and boasts a 98.6% gift satisfaction rate according to the feedback of gift receivers. Giftpack’s technology analyzes the digital footprint of any individual to suggest the most suitable gifts, disrupting the broader industry of gift-giving and setting the precedent for personalization. It’s establishing a new era of gifting, where technology and creativity converge to provide unique and heartfelt gestures.
What market does Giftpack target and how big is it?
Giftpack addresses both the corporate gifting and personalized gifting markets.
– $316B+ for corporate gifting
– $700B+ for personalized gifting
What’s your business model?
Our revenue model is structured on a dual-tier basis. We generate income through commissions from our network of vendors and partners, which are assessed as a percentage of transactions or sales facilitated through our platform. In addition, we levy service fees and subscription charges on our valued clients for access to our specialized services and premium features. This balanced approach allows us to maintain a sustainable and mutually beneficial ecosystem, where our revenue is derived from both suppliers and clients.
How are you preparing for a potential economic slowdown?
While forecasts on the future economy might be uncertain, the future for corporate and personalized gifting is bright. Companies are still adjusting to deal with remote, hybrid, or in-person work plans and are adopting new practices for engaging employees. Regardless of whether there will be an economic slowdown, there will always be businesses doing well and they will need to maintain strong business relationships with many stakeholders. In comparison to spending a lot of money on raising salaries for employees, or lowering service fees for customers, gifting is a less expensive yet more effective way to sustain a relationship.
What was the funding process like?
Overall, the process was pretty much the same as other startups. The difference is we were able to secure the funding more quickly than others because we have kept great relationships with our investors, and yes, gifting was involved. Most importantly, we showed them Giftpack is a sustainable and scalable business.
What are the biggest challenges that you faced while raising capital?
Having limited initial funding can make achieving significant traction challenging. The gifting industry was relatively uncharted territory for most investors, making them uncertain about going BIG with us. Without showing our investors that we can be seen by the world was one of the biggest challenges we had.
What factors about your business led your investors to write the check?
We were lucky to raise several millions of dollars from our early investors and believers from across the globe and it helped us overcome a lot of difficulties back in the early days. This infusion of capital signifies a resounding vote of confidence from investors as we enter a pivotal moment for Giftpack AI. We are redefining the gifting landscape and poised to shape the way people connect and express their emotions through thoughtful, personalized gestures. Innovation, globalization, and tractions are the deal winners for us. If you are just a business that makes money, then it’s not good enough for early-stage investors, especially for the big investors who want to impact the world.
We were lucky to raise several millions of dollars from our early investors and believers from across the globe and it helped us overcome a lot of difficulties back in the early days. This infusion of capital signifies a resounding vote of confidence from investors as we enter a pivotal moment for Giftpack AI. We are redefining the gifting landscape and poised to shape the way people connect and express their emotions through thoughtful, personalized gestures. Innovation, globalization, and tractions are the deal winners for us. If you are just a business that makes money, then it’s not good enough for early-stage investors, especially for the big investors who want to impact the world.
What are the milestones you plan to achieve in the next six months?
We have an expansive pipeline that demands securing. After effectively capitalizing on these opportunities, we will commence our next funding round. Our approach involves two key steps: first, establishing a prominent brand presence through marketing efforts, and second, enhancing the precision of our AI model to deliver laser-focused accuracy in gift recommendations.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
For companies in New York (or any entrepreneur) where expenses are high and resources go quickly, the biggest mistake you can make is thinking you can do everything. The reality is people have certain strengths and only so much time in a day. One example of this is sales – it’s easy to feel you can handle building, scaling, marketing, and selling a product simultaneously. Failure to establish a strong sales strategy early on can cost you and ultimately, you will need to hire someone to not only fix but run things properly.
Where do you see the company going in the near term?
My vision is for Giftpack to become synonymous with the word “gifting,” be that personal or corporate. We are building a platform that converts corporate gifting from a year-round hassle into a process that takes a few minutes if not seconds. Additionally, we’re continuing to develop a strong visual engine that bridges the gap between client demand and manufacturing. This will help us become the leading platform that can make the real “Easy Gifting” experience.
What’s your favorite fall destination in and around the city?
Pier 17. I love sitting on the bench eating lunch while looking at the Brooklyn Bridge. It helps me think and reminds me why I’m in New York City. I hope WeWork can sustain longer because 199 Water Street means a lot to me and Giftpack.
