Social Commerce Leader LivingSocial Raises $25 Million Series B Round, Led by U.S. Venture Partners

WASHINGTON, March 11 /PRNewswire/ -- LivingSocial, the social commerce leader behind LivingSocial Deals and top Facebook applications Visual Bookshelf and Pick Your Five, today announced that it has completed a $25 million Series B round of venture funding led by U.S. Venture Partners, with Grotech Ventures and Steve Case's Revolution, LLC participating. With this round of funding, LivingSocial Deals is launching in four additional cities: Chicago, Denver, Raleigh Durham and San Diego, making the program live in 13 markets across the country, growing to dozens of cities by year-end. By signing up for LivingSocial's free daily online service people are saving an average of 50-70% at their favorite places, such as the hottest local restaurants, spas, sporting events, hotels, and other local attractions, giving local merchants the Web prowess of viral marketing proven through LivingSocial's explosive Facebook success.

"With more than a million people already using LivingSocial Deals, online group buying is a movement that is clearly resonating with consumers," said Tim O'Shaughnessy, CEO of LivingSocial. "This round of funding enables us to accelerate our growth throughout more cities and combine our feet-on-the-street approach with our social channel expertise to offer our 85 million customers great deals at local businesses, while giving merchants a no-risk way to get customers through their doors."

LivingSocial is the premier local activity discovery engine – the place where anyone can find out what's "hot" in and around their city. As a result, it not only gives local merchants an innovative way to reach nearby customers, but also leverages LivingSocial's unprecedented social media knowledge to grant merchants access to the company's extensive community of more than 85 million people. With LivingSocial, merchants get the viral power of the Internet, the reach of the LivingSocial community, and the leverage of the iPhone platform.

LivingSocial today also launched an affiliate program for sites large and small, producing a revenue opportunity for affiliates, such as blogs and other sites, and broadening the advertising reach for merchants to the farthest ends of the Web. LivingSocial affiliates can generate revenue by delivering amazing discounts targeted to their loyal readers. Creating a centralized affiliate program gives participating merchants reach into new media, without requiring them to create, develop and manage individual relationships with an ever-growing cast of bloggers or other local content sites. More information can be found at http://livingsocial.com/affiliates

"Local merchants deserve the ability to link online advertising spend with store visits, not just site visits," said Ted Maidenberg, Principal at U.S. Venture Partners. "LivingSocial is at the forefront of a profound shift in the way local merchants engage with new and existing customers. This investment will allow them to continue to evolve the program and reach new markets so more merchants can reap the rewards of what LivingSocial has to offer."

LivingSocial's group buying service has grown rapidly since its launch in August 2009, expanding from Washington, D.C., to New York City, Boston, Atlanta, Austin, Seattle, San Francisco, Los Angeles, the Twin Cities, Chicago, Raleigh Durham, Denver, and San Diego, with more cities rolling out in coming months. Also, with the first social savings iPhone application, LivingSocial users can get savings on-the-go and be alerted when new deals are available through push notifications and even redeem directly from their iPhone. LivingSocial users throughout the country have already saved millions of dollars, with tens-of-millions more on tap throughout 2010.

"We're really excited to bring LivingSocial to Chicago, Denver, Raleigh Durham and San Diego as these markets have such vibrant populations," added O'Shaughnessy. "The deals we offer reflect the diversity and unique nature of each city, encouraging the exploration of nightlife, culture, entertainment, and outdoor activities."

For more information or to sign up for your city, go to http://livingsocial.com.

About LivingSocial

LivingSocial is an online community that connects 85 million people to all the things they care about. LivingSocial also powers group buying through Deals, its new social commerce program which invites people and their friends to save 50% off or more each day at their favorite restaurants, spas, sporting events, hotels and other local attractions in major cities. As the creator of top Facebook applications "Visual Bookshelf" and its flagship "LivingSocial," it's the most comprehensive place on the Web for people to engage with others around topics like entertainment, food, fashion, technology and more. The company is headquartered in Washington, D.C. To sign up for Deals in your city, or to find out more information about LivingSocial, visit www.livingsocial.com. You can also follow LivingSocial on Twitter at www.twitter.com/livingsocial.

About U.S. Venture Partners

U.S. Venture Partners (USVP) is a leading Silicon Valley-based venture capital firm, helping entrepreneurs build world-class companies since 1981. USVP focuses on early stage opportunities in sectors where the Partners have the domain expertise, operating experience and network of relationships to contribute to the success of an enterprise. Currently, the firm invests in digital communications, network systems, consumer and business services, media, semiconductors, clean technologies, biopharmaceuticals and medical devices.

SOURCE LivingSocial