Deal Found: Canadian Group-Buying Company Receives $31 Million Investment from Leading Venture Capital Partners
Dealfind solidifies position as leader in growing group-buying phenomenon
TORONTO, May 16 /PRNewswire/ - The stakes have been raised in the world of online group-buying. Dealfind, a leading player in the online daily deal space, announced today that the company has secured $31 million in investment funds from three leading venture capital investors. Within a mere one year of the company's inception, Dealfind has received the financial nod of approval from major Canadian and global industry players, Insight Venture Partners (New York), Georgian Partners (Toronto), and the Ontario Venture Capital Fund "OVCF" (Toronto). The three investors' considerable resources will allow Canada's leading daily deal website to further finance its growing infrastructure and advance its aggressive plan to expand across Canada and the United States in 2011. The terms of the agreement have provided investors with a minority interest in the company.
"Securing such significant financing after only one year in business is a testament to the current success of Dealfind, as well as our future expected growth," said Gary Lipovetsky, President, Dealfind. "From day one, we have been committed to providing consumers with premium online group-buying services and these funds will allow us to continue achieving that goal."
Jeff Lieberman, Managing Director at Insight Venture Partners notes: "We were impressed by Dealfind's solid business model, calibre of their clientele, and the speed with which they have become the number one daily deal company in Canada. Our decision to partner with these Canadian entrepreneurs was an easy one to make." Insight Venture Partners is a leading private equity and venture capital firm focused on the global software, internet and data services industries. Notable investments include its 2009 investment in Twitter.
Simon Chong, Managing Partner at Georgian Partners: "Dealfind is a very fast growing Internet company, that in less than one year has become the number one Canadian player, and we see great potential for continued expansion in Canada and the United States." Georgian Partners is a growth equity firm investing in expansion and later-stage enterprise software, applied analytics and information aggregation companies, and has provided capital for a number of fast-growing companies such as Terapeak.
Ian Carew, Director, of Northleaf Capital Partners, the manager of OVCF: "Dealfind has established itself as the leader in the Canadian market, and we are proud to have partnered with Georgian Partners and Insight Venture Partners to support Dealfind in its next phase of growth." OVCF has co-invested alongside leading Canadian and US venture capital and growth equity fund managers in a number of high potential Canadian companies such as I Love Rewards and BlueCat Networks.
Dealfind was founded in May, 2010 by Gary Lipovetsky and Michael Tulman, CEO and was launched as a division of MenuPalace.com, an online restaurant directory which was founded in 1999. Dealfind is a natural evolution for the MenuPalace.com team into performance based local advertising for business verticals beyond restaurants.
Dealfind is slated for aggressive expansion in Canada and the United States. By the end of 2011 Dealfind's goal is to be in over 100 cities in North America. The online group-buying phenomenon continues to grow and internal research from Dealfind indicates the significant purchasing power of the average Dealfind consumer. A full one third of Dealfind customers have an average annual household income of $100,000 or more, with another third of its customers stating their average household income to range from $60,000 to $100,000 per year. As consumers continue to pursue opportunities to get the most value from their dollars, Dealfind will continue to grow.
Dealfind is a branch of MenuPalace.com which started in 1999. Since May, 2010 this online group buying website has sold over 750,000 vouchers, and has saved consumers over $112,000,000. The 72nd most visited site in Canada, the company is also listed as the 626th most visited site in the United States* and the 2,734th most visited site in the world*. Dealfind employs 130 staff and can credit its growing success to its strong customer service and after-sale support.
*Based on information from www.alexa.com*