Boomerang crunches your friend's Facebook and geographical data to come up with gift suggestions in his or her town for any "giftable moment" it can dig up from your online information — birthday, anniversary, or new job, for example. Then you can buy your friend a gift certificate for that local business at rang.com.
"We've actually surveyed consumers, and 70 percent of them tell us they'd actually prefer to give a gift for a local business," Smith told CNBC's "Squawk on the Street" last week.
For now, local business engagement is only in New York City, Austin, Indianapolis and Boomerang's hometown of Chicago. Outside of these, gift givers are limited to nationwide online retailers. Boomerang has partnered with corporations including Nike, Banana Republic, Travelocity, Starbucks and Fandango.