WASHINGTON, DC – LivingSocial, the company that developed the popular Facebook applications, Visual Bookshelf and Pick Your Five and the revenue-producing LivingSocialDeals, has raised a $14 million C round of financing led by Lightspeed Venture Partners on the heels of closing its $25 million B round in March. U.S. Venture Partners, Grotech Ventures and Steve Case’s Revolution participated in the financing.
The company raised $10 million previously for a total of $49 million. We can’t help but be impressed at how quickly LivingSocial has pumped venture fuel into its group buying deals program, which it is rapidly expanding. It does have competition from Chicago-based Groupon, which also recently raised a huge $135 million round. Others include BuyWithMe and Kashless.
A Lightspeed managing director told the Wall Street Journal LivingSocial is growing as fast or faster than Groupon. The online group discount business can probably handle several leading players, but consolidation is likely somewhere down the road.
LivingSocial will use the capital infusion to expand into additional markets – bringing Deals to dozens more cities throughout the U.S. in 2010. Consumers who sign up for the Deals program receive offers that save an average of 50 to 70 percent on local products and services, such as restaurants, spas, sporting events, hotels and attractions.
Launching in new markets
It is launching in four new markets: Portland, Orange County, Charlotte and Philadelphia. That brings LivingSocial live in 18 cities across the country with major plans to expand to dozens of markets throughout the year. It’s already active in many Southeast markets, including Raleigh-Durham, Atlanta, and DC.
“We’ve known and admired the LivingSocial team for a long time, and I have bought many of their terrific local offers. They’ve done an excellent job of growing their user base through smart media buying and excellent knowledge of social channels and virality,” said Jeremy Liew, managing director of Lightspeed Venture Partners. “With this financing round, LivingSocial is very well positioned to bring their great offers to even more people.”
The company says LivingSocial users throughout the country saved an average of more than $32 each in March, and have saved tens of millions of dollars since the launch of Deals in 2009.
We turned the tables on LivingSocial CEO Tim O’Shaughnessy and asked him to pick his five favorite things shortly after the firm’s last financing: Five Questions for LivingSocial’s Tim O’Shaughnessy
For our profile of LivingSocial see: LivingSocial helps users find the next great book, band or beer
For our story on the company’s previous financing in March see:
Southeast Venture Conference, February 29 – March 1, 2012 at the Ritz Carlton in Tysons Corner, VA – Where Smart Money Meets Smart People.
www.seventure.org
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Tags: Atlanta, Charlotte, DC, financing, LIvingSocial, LivingSocialDeals, Raleigh Durham, social networking
