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Summary:

Turns out collective buying isn’t the only path down which LivingSocial is following local coupon hotshot Groupon. Less than two weeks after Groupon closed a $135 million Series C round, LivingSocial has raised a $14 million Series C round led by new investor Lightspeed Venture Partners.

Turns out collective buying isn’t the only path down which LivingSocial is following local coupon hotshot Groupon. Less than two weeks after Groupon closed a $135 million Series C round from Digital Sky Technologies and Battery Ventures, LivingSocial has raised a $14 million Series C round led by new investor Lightspeed Venture Partners and including U.S. Venture Partners, Grotech Ventures and Revolution Capital. No, those numbers aren’t really in the same ballpark, but LivingSocial has its eyes on the No. 2 spot in a fast-growing market.

LivingSocial had previously raised a $25 million Series B round in March and a $5 million Series A-1 round in January. But although that may lead you to think CEO Tim O’Shaughnessy had spent every waking minute of 2010 raising money, the company also has a few product announcements today. One, it’s launching neighborhood deals, first in Seattle with three “hyperlocal” offerings per day; and two, it’s adding four new markets — Portland, Ore., Orange County, Calif., Charlotte, N.C. and Philadelphia — for a total of 18 U.S. cities.

“Admittedly it’s an easy business to get into. It’s a hard business to scale, ” said O’Shaughnessy of the many, many collective buying sites — what we like to call the Groupon groupies. O’Shaughnessy said LivingSocial doesn’t launch into a new market without having feet on the ground there to sell to merchants directly. As for Groupon, he said, “They’ve made a great business, have awesome traction, and a lot of money. More power to them.”

For more background on LivingSocial, see the story I wrote about their last funding round in March. Heck, it’s not even out of date!

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  1. do you know how much of the $135m was cash out?

  2. probably close to $100M

  3. I led Lightspeed’s investment in Living Social. Here is why: http://bit.ly/aTVQXo

  4. John Di Domenico Thursday, April 29, 2010

    We are starting to see some sky high valuation for pre-profit type companies.Hmmm, some industries never learn.

  5. new deal maker:

    Kelsey Group just wrote about dealwerk.com/ adility yesterday: http://bit.ly/al3I9d

    Please see the press release for dealwerk here: http://bit.ly/cjM3lP

  6. More Tweaks on Commerce 2.0: Targeting Moms and Spending Histories Thursday, May 13, 2010

    [...] portfolio (Tippr), and the Groupon clone that’s already raised funding three times this year (LivingSocial). But now entrepreneurs are drilling down into ways to make local coupons more personalized and [...]

  7. Twitter Will Also Get Into Commerce 2.0 with Earlybird Tuesday, July 6, 2010

    [...] daily deals site behind Groupon and LivingSocial, which have raised more than $170 million and $44 million, [...]

  8. Gary Henderson Tuesday, October 19, 2010

    There is a new company launching with some solid funding in Myrtle Beach, SC! They are spending $250,000 alone in the small market on mainstream media. This will revolutionize the social buying landscape. Check out http://www.GrabTheDeal.com for more information.

  9. LivingSocial and the Future of Local Group-Buying: Tech News « Wednesday, October 27, 2010

    [...] raised a Series C round of $14 million in April from new investor Lightspeed Venture Partners and a group of other financial backers that included [...]

  10. Did Google buy Groupon for $2.5 billion over the weekend? Monday, November 29, 2010

    [...] launched Deals feature has something to do with it. It’s also been reported that similar site LivingSocial is actually growing faster than Groupon, and that it has the capacity to continue. The deal with Google seems like a win-win [...]

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