Back in June, we profiled British startup Velocity, which allows affluent individuals to track their spending at clubs and earn reward points along the way. At the time we noted that American pay-as-you-go platform Cover represented a potential rival in the United States, but we have now learned that this will not be the case, as Cover has been acquired by Velocity.
Specific terms of the transaction have not been revealed, but Velocity reports that this represents their first major acquisition and that more should be expected, as the startup is moving forward with plans for a global rollout. With this acquisition, Velocity now boasts connections to a network of high-end restaurants in cities like London, New York, Los Angeles, and San Francisco and intends to move into further locations in the United States, Europe, and Asia.
In addition to the acquisition, Velocity reveals that they have closed a Series A deal valued at $16 million, a greenshoe anchored by Saxo Bank CEO Lars Christensen. As a result of the deal to buy Cover, Velocity also added Spark Capital, OATV, and Lerer Ventures to its roster of shareholders. These new backers join a couple of private angels, including former Thomson-Reuters CEO Tom Glocer and Shukri Shammas from Initial Capital Partners.