Groupon Raises $30 Million For Local, Social Shopping Deals
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Groupon, a social, online deal-finding service, has raised $30 million in funding. Accel Partners led the round, with participation from previous backer New Enterprise Associates (NEA). The Point, Groupon’s parent company, raised roughly $7.3 million from NEA and angel backers over the course of 2007 and 2008.
Groupon will use the new money for tech development and to continue its national expansion; the company currently offers deals in 26 major cities, including Boston, NYC and L.A.
Each day, the site spotlights a coupon from a different local business—be it a restaurant, massage studio, or a theater—but a minimum number of people need to sign up for the discount to take effect. So Groupon makes it easy for people to quickly notify their friends about the deals through Twitter, Facebook and email.
The site initially launched in Chicago last November; the company says users have purchased over 800,000 “groupons” since then, and tells TechCrunch that it reached profitability in June. Groupon makes money by taking between 30 and 50 percent of the total price businesses charge for the daily deal. Release.
Posted In: Advertising, Daily Deals, Local, E-Commerce, Money, M&A & Venture Capital, Venture Capital, Social Media, accel partners, new enterprise associates
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