LivingSocial Raises $25 Million, Challenging Groupon

Posted Mar 11, 2010

LivingSocial is a company known for making Facebook applications where users can rate and review their favorite books, movies, etc.  Now LivingSocial is trying something new: group coupons.

LivingSocial raised $25 million in a round led by U.S. Venture Partners, Grotech Ventures, and Steve Case’s Revolution LLC.  Local businesses offer deals to only a group of people.  LivingSocial plans to take this concept and spread it on Facebook.  If a local deal is made, LivingSocial gets a cut from the local businesses.

Currently LivingSocial is offering group coupon deals to residents in Chicago, Denver, Raleigh-Durham, and San Diego.  LivingSocial’s biggest competitor for this new model is, another well-funded group coupon company.  The advantage that LivingSocial has is that they already have a solid footprint in Facebook applications. [VentureBeat]