Niklas Zennstron is on to the next big thing – the intersection of mobile, social and local – by investing in a new company called Wrapp which allows users to send gift cards via social networks. In a nutshell, you see it’s a friend’s birthday on Facebook and then send a gift card. They receive an email and the store scans it.
The twist here is companies could potentially offer free gift cards for sending, allowing you for example to send someone $10 which the store would in theory book as a referral fee/coupon meaning this fee becomes a marketing/customer acquisition cost. Obviously this makes the most sense if the lowest cos item in the store is far north of $10.
Zennstrom is a brilliant entrepreneur and has great timing. He launched P2P company Kazaa which became a huge player in online music and movie sharing. From there Skype and then Joost for online movie watching. This last venture didn’t work out most likely because content providers watched how Skype really hurt the phone companies and didn’t want to see the same thing happen to them.
Now with this new investment, we will see if Zennstron’s track record will continue to see more wins than losses. At least one thing is for sure – he is in the right spaces.