LivingSocial Creator Takes New $5M Round

Hungry Machine Inc., the application developer behind LivingSocial.com, the social cataloging service, has raised $5 million in a new round of funding, according to a regulatory filing. Existing investors Steve and Jean Case and Grotech Capital Group contributed to the round, nominally a Series A-1, which also included company CEO Tim O’Shaughnessy. LivingSocial last announced funding in July 2008, when it revealed a $5 million Series A round from the same backers; the company confirmed to me in a short statement that it has now raised $10 million total since its inception. In an interview, Grotech’s Don Rainey declined to discuss LivingSocial’s current valuation, but said the new funding is “a positive event for all involved.”

LivingSocial, best known for its Facebook applications, which allow users to share reviews and top-five lists of movies, books, music and other activities, launched a group-buying service that competes with well-funded Groupon and acquired BuyYourFriendADrink.com, a beverage-gifting site, in 2009. LivingSocial declined to disclose its revenue in the filing, but Rainey said its primary revenue streams come from Facebook ads and the group-buying service.

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