BestVendor, a New York-based startup that uses social recommendations to help business leaders make purchasing decisions, raised $600,000 in seed funding.
The round was led by SoftBank Capital and Lerer Ventures, with participation from SVAngel and Peter Thiel.
BestVendor crowdsources product reviews and recommendations for small businesses to help them understand what to buy. Users share and rate a few products they use in their business to get, in exchange, free access to all other reviews and profiles on the site. In this way, the company provides dynamic rankings of product categories such as collaboration software, web hosting providers, and payroll providers based on what other users recommend.
Founded in January by CEO Jeff Giesea, Ben Zhuk and Magnus von Koeller, BestVendor plans to drive revenue from enhanced vendor listings, various pay-for-performance options, and transactional revenues.
The company is currently hiring designers and front-end developers (click here).