April 29--Rocketmiles, a Chicago travel startup co-founded by a former Groupon and United Airlines executive, has raised $2 million in its first round of external funding.

The company was created in 2012 and operated in beta mode for two months before a formal launch this month. Co-founder and Chief Executive Jay Hoffmann was formerly vice president in charge of new business at Chicago-based daily deals company Groupon and before that, was managing director of Mileage Plus at United. Hoffmann's co-founders at Rocketmiles, Bjorn Larsen and Kris Helenek, were formerly at Edhance, a startup focused on student discounts linked to credit cards.

Rocketmiles is a hotel booking site aimed at helping travelers accumulate reward miles. The startup signs up hotels for its network and consumers that book through the site receive thousands of miles for their airline loyalty programs. According to Hoffmann, rates offered through Rocketmiles are competitive with those found via online travel agencies, and customers earn an average of 3,000 miles per night.

The site works with American AAdvantage, Delta SkyMiles, HawaiianMiles, United MileagePlus and US Airways Dividend Miles. The company said it ensures that a minimum of 1,000 miles or points will be always available for each night.

Rocketmiles' fundraising round was led by Cambridge, Mass.-based Atlas Venture. Other participants included Cambridge-based Link Ventures, Salt Lake City, Utah-based Peterson Ventures and "several angel investors in the travel and loyalty industry," according to a statement.

Rocketmiles said it will use the money to invest in marketing, customer acquisition and expanding its partnerships with airlines and hotels.

[email protected] -- Twitter @VelocityWong

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