LivingSocial

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LivingSocial
LivingSocial logo.
Web addressLivingSocial.com
Commercial?Yes
Type of siteElectronic commerce
Available language(s)English and others (for 27 countries)
OwnerLivingSocial Inc.
Created byTim O'Shaughnessy, Aaron Batalion, Eddie Frederick, Val Aleksenko
Launched2007
Alexa rankpositive decrease 1,282 (December 2013)[1]
Current statusActive
 
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LivingSocial
LivingSocial logo.
Web addressLivingSocial.com
Commercial?Yes
Type of siteElectronic commerce
Available language(s)English and others (for 27 countries)
OwnerLivingSocial Inc.
Created byTim O'Shaughnessy, Aaron Batalion, Eddie Frederick, Val Aleksenko
Launched2007
Alexa rankpositive decrease 1,282 (December 2013)[1]
Current statusActive

LivingSocial is a deal-of-the-day website that features discounted gift certificates usable at local or national companies. Based in Washington, D.C., LivingSocial now has more than 70 million members around the world.

History[edit]

LivingSocial was founded as Hungry Machine in 2007 by four employees from Revolution Health Group. The company's first major application was their Visual Bookshelf application on Facebook which allowed users to catalog and share their favorite books with friends.[2] Later, the company released PickYourFive and other Polls applications, making LivingSocial the number one application developer on Facebook as measured by page views.[3] After acquiring BuyYourFriendADrink.com in 2009, LivingSocial launched a daily deals website, which since has become its highest grossing venture to date.[4]

In 2012 a class action was launched against LivingSocial in respect of expiry of deals, following a similar action against Groupon.[5] A provisional settlement was reached in November 2012.[6]

On April 26th, 2013 it was announced that LivingSocial's database had been hacked, affecting 50 million registered users. The announcement stated that credit card information was stored in a separate database and was not compromised, but that user information including passwords, previously encrypted by LivingSocial as a precaution, had been exposed. [7] On May 1, 2013, Attorneys General from Connecticut and Maryland Attorney sent a joint letter to LivingSocial requesting additional information about the incident, as well as more details about the company's data management policies and procedures. [8]

Funding[edit]

The company received $5 million in Series A funding in June, 2008 from Grotech Ventures and Steve Case. In January 2010, LivingSocial raised $5 million in Series B funding from Grotech Ventures and AOL Founder Steve Case. Two months later, on March 11, 2010, the company announced a $25 million round led by U.S. Venture Partners, Grotech and Case. LivingSocial then acquired $14 million Series C round, from Lightspeed Venture Partners with U.S. Venture, Grotech and Case contributing.[9] Most recently, US Venture Partners and Grotech invested an additional $10.23 million of equity offering to the company. Its fundraising for 2010 comes to $50 million.[10] In December 2010, LivingSocial received a $175 million investment from Amazon.com.[11] LivingSocial also received an additional $8 million investment from Lightspeed Venture Partners.[11] In March 2011, less than four months after the $175 million Amazon investment, LivingSocial raised an additional $400 million from prior investors like Amazon and Lightspeed Venture Partners, and several new ones including T. Rowe Price and Institutional Venture Partners. As of early April, LivingSocial is valued at more than $3 billion.[12][13]

Acquisitions[edit]

References[edit]

  1. ^ "Livingsocial.com Site Info". Alexa Internet. Retrieved 2013-12-01. 
  2. ^ Hart, Kim. "LivingSocial Takes Top Spot Among Facebook Apps - Post I.T. - A Technology Blog From The Washington Post - (washingtonpost.com)". Voices.washingtonpost.com. Retrieved 2010-11-19. 
  3. ^ "LivingSocial Becomes the Largest Facebook Application Ever". Allfacebook.com. Retrieved 2010-11-19. 
  4. ^ "Citybizlist Washington DC - Hungry Machine/Living Social Devours Another $10.2M - cbl". Dc.citybizlist.com. Retrieved 2010-11-19. 
  5. ^ Washington Business Journal
  6. ^ Settlement details
  7. ^ "Living Social Database Hacked; 50 Million customers impacted". redtape.nbcnews.com. Retrieved 2013-04-26. 
  8. ^ Radke, Bruce A.; Michael J. Waters (May 16, 2013). "Letter from Attorneys General to LivingSocial Can Serve as Guide for Companies Seeking to Protect Personal Information". The National Law Review (Vedder Price). ISSN 2161-3362. 
  9. ^ April 29, 2010 Jolie O'Dell View Comments (2010-04-29). "Groupon Competitor LivingSocial Has Now Raised $44 Million This Year". Mashable.com. Retrieved 2010-11-19. 
  10. ^ Swisher, Kara (2010-09-16). "LivingSocial Brings Funding Up to $50 Million, Launches in 25 New Cities | Kara Swisher | BoomTown | AllThingsD". Kara.allthingsd.com. Retrieved 2010-11-19. 
  11. ^ a b December 3, 2010 Riley McDermid (2010-12-03). "Group buying startup LivingSocial starts living large with $175M from Amazon". VentureBeat.com. Retrieved 2010-12-03. 
  12. ^ April 4, 2011 Evelyn M. Rusli. (2011-04-04). "In Race With Groupon, LivingSocial Raises $400 Million". New York Times online.com. Retrieved 2011-04-06. 
  13. ^ Klein, Allison (2011-04-05). "LivingSocial, based in D.C., raises $400 million as it vies with Groupon". www.washingtonpost.com. Retrieved 2011-04-06. 
  14. ^ "LivingSocial Continues to Differentiate with Purchase of Urban Escapes". www.blog.kelseygroup.com. Retrieved 2011-04-13. 
  15. ^ "LivingSocial Buys 5 million controlling stake in jump on it". www.dailydealmedia.com. Retrieved 2011-04-13. 
  16. ^ "LivingSocial Expands into Australia with 5m investment in jump on it". www.socialtimes.com. Retrieved 2011-04-13. 
  17. ^ "LivingSocial acquires a majority stake in Let's Bonus". www.fusiondiginet.com. Retrieved 2011-04-13. 
  18. ^ "LivingSocial gains wealth of ruby on rails expertise with Infoether acquisition". www.fusiondiginet.com. Retrieved 2011-04-13. 
  19. ^ "LivingSocial acquires rubyrails consultancy infoether". www.dctechsource.com. Retrieved 2011-04-13. 
  20. ^ "LivingSocial Expands Daily Deals Empire; Buys Ensogo, GoNabit And DealKeren". TechCrunch. 
  21. ^ "LivingSocial Buys Online Ordering System Provider ONOSYS". www.bloomberg.com. Retrieved 2012-04-26. 

External links[edit]