• August 14, 2009

Digital marketing and payments company edo Interactive has closed $8.5 million in a first-round venture financing led by Clayton Associates and First Avenue Partners. The Nashville, TN-based company will use the funding to accelerate technical development, roll out marketing initiatives, and continue expanding staff.

Two-year-old edo offers a prepaid debit card aimed at teens and young adults called Facecard that offers digital tools such as peer-to-peer gifting, text updates and integration with social networks. Through the card, users can take advantage of cash incentives called Prerewards aimed at encouraging consumers to go from merely browsing to buying in online and brick-and-mortar stores.

Coca-Cola, Baskin Robbins, H&R Block and Cloudveil are among brands that have partnered with edo to issue private-labeled Facecards.

In connection with the funding, Matthew King of Clayton Associates and David Wilds of First Avenue Partners will join edo's board of directors. -Mark Walsh