Here’s another sign of how much promise investors think there is in the group-buying market: LivingSocial, which runs a group-buying service, has raised $14 million in a third round of funding, only a month-and-a-half after raising a $25 million second round. The company also has several social apps, including its flagship LivingSocial, which lets users indicate and share favorite things on social networks — but LivingSocial has switched much of its focus lately to its fast growing group-buying service, which is now in 18 cities. The startup says it will use the new cash to expand to “dozens of more cities” this year, up from its current 18.
The round — which brings LivingSocial’s total backing to $49 million — was led by Lightspeed Venture Partners. U.S. Venture Partners, Grotech Ventures and Steve Case’s Revolution LLC also participated. It comes as investors have been racing to put money into the group-buying market. Rival Groupon — which is in 50 cities — raised $135 million in a funding round earlier this month.