Local startup, TapOnIt, emerging stronger and healthier

It was New Year’s Eve 2019, and Katie Castillo-Wilson and her co-founder/sister, Sara Castillo, were on top of the world. They were toasting the best year ever for their startup technology company, TapOnIt, founded in 2015. The company had doubled year over year, fueled by TapOnIt Deals, a product of their text marketing platform that sends offers and promotions for local businesses via text to the people that have signed up to receive them. TapOnIt Deals was active across 42 markets, reaching hundreds of thousands of consumers and driving traffic into thousands of businesses.

But just a few months later, in March of 2020, the COVID-19 pandemic changed the world and their business plans. TapOnIt Deals’ small and medium businesses, who relied on its text message advertising services, were devastated as the nation sheltered in place.

To stay in business, TapOnIt Deals scaled back to focusing on a few core markets, including their hometown, the Quad Cities, which has over 72,000 subscribers. They had to get creative in generating revenue; selling PPE and an e-gift card platform were some new ideas that helped keep the business alive.

The biggest change was to pivot back to the company’s original goal of building a SaaS (software as a service) text marketing platform. With over six years’ experience in text message marketing, TapOnIt has positioned itself as an expert in the space.

“TapOnIt Deals provided us with the time and space to prove that people will sign up to be texted from their favorite brands,” Castillo-Wilson said, “but many Quad Cities residents don’t realize we are so much more than a coupon company. Our technology powers databases for companies all over the country, allowing them to directly connect with their audiences.”

“We certainly couldn’t have planned for a pandemic,” Castillo-Wilson continued, “the silver lining was that it gave us the time to shift our focus back to building the business around our technology. We’ve learned a lot over the past year and a half, and things are going well.”

In 2021, her team has expanded from 12 to 23 employees and outgrown its previous Village of Davenport office. It now is headquartered at 5409 Victoria Ave., Davenport, where it has a co-working office space arrangement with Bush Construction.

Castillo-Wilson credits her and her teams’ connections and involvement with the Quad Cities Chamber with helping to raise TapOnIt’s profile. The team have been active members (including one Chamber Ambassador), attended many networking events and Katie now serves on the board of directors. TapOnIt was honored as the Chamber’s 2017-2018 Business of the Year. With that award, “I felt that people in the business world were starting to take us seriously,” she said.

In addition, Castillo-Wilson said the Chamber has provided TapOnIt resources and encouragement. From the introduction to Bonin Bough, a keynote speaker at a Chamber annual meeting to connections with Riverbend Angels investors, the Chamber has been cheering them on. Two years ago, after a nudge from the Chamber to apply, TapOnIt made the top 100 of Pepperdine’s Most Fundable Companies Competition – based on several variables including financial projections, market opportunity, intellectual property, competitive advantage, and strength of management team expertise. They received the recognition again this year. TapOnIt is an example of a company the Chamber tracks over time as the business evolves and assists with business growth opportunities though our sector-based outreach program called Business Connections.

“This week we’re celebrating Global Entrepreneurship Week – and we’re proud to celebrate one of our local entrepreneurs who continues to grow across the country while remaining rooted in the QC,” said Julie Forsythe, Senior Vice President for Business and Economic Growth for the Chamber. “I admire Katie’s energy and drive for greatness. It is rare to find a woman-owned, minority-owned technology company.”

Plus, TapOnIt has given back to the Chamber and our community through the launch of the custom-built Keep It QC Visa® Gift Card program. Designed to keep spending local, 90% of last year’s card expenditures were made within the Quad Cities’ six-county region.

TapOnIt has developed a strong backing among Quad Cities investors including entrepreneur Jim Thomson, their first investor. They have since landed outside investors – including Gannett and Townsquare Media – to keep the company on a growth trend. Along her entrepreneurial journey, Castillo-Wilson has raised a over $5 million to ensure TapOnIt’s continued expansion.

Still TapOnIt knows the uphill battle of being a female-founded technology company in Iowa.  “Less than 2% of venture capital goes to female-founded companies and most many investors think that tech companies have to be in Silicon Valley or New York City,” Castillo-Wilson said. “There are smart people great ideas everywhere. The pandemic helped people realize that you don’t have to be in any one place to work for or run a business. Successful companies can from just about anywhere, even Iowa.”

Always looking to the future, Castillo-Wilson said “We’re on a path to continue to scale our SaaS business but I also believe TapOnIt Deals will have a comeback. Eventually there will be some sort of ‘normal.’ Businesses will want people through their doors and TapOnIt Deals will be ready.”