Living Social

Merchant Warehouse |

January 15, 2013

LivingSocial is an eCommerce website featuring discounted gift certificates for services or products offered by national or local organizations. The site features one deal a day valid for 24 to 36 hours for each geographic area it covers. Members receive offers through email and by browsing the site on a daily basis. Posts are available in English or languages spoken in 27 countries. LivingSocial’s headquarters are located in Washington, D.C., and the company currently has over 85 million subscribers worldwide.

History

LivingSocial was founded as Hungry Machine Inc. by four employees, Tim O’Shaughnessy, Eddie Frederick, Aaron Batalion and Val Aleksenko, from Revolution Health Group in 2007. Hungry Machine Inc. is currently doing business as LivingSocial.

In July of 2008, LivingSocial received over $5 million in Series A funding from Grotech Ventures and investors Steve and Jean Case.

On July 27, 2009, LivingSocial promoted its first daily deal for a restaurant in Washington, DC called Zengo. On December 9, 2009, LivingSocial released its first iPhone app.

In January 2010, LivingSocial received $5 million from Steve Case and Grotech Ventures in Series B funding. LivingSocial launched in London in June 2010. Along with contributions from other funders, including U.S. Venture Partners and Lightspeed Venture Partners, LivingSocial netted $50 million in 2010 funding. 

In October 2010, the company acquired Urban Escapes, a social adventure company, in order to launch LivingSocial Adventures and LivingSocial Escapes. In November of the same year, the company invested approximately $5 million in the Australian company Jump On It, securing its place as a major contender in the Australian social shopping market.

LivingSocial acquired a majority stake in LetsBonus during January 2011. LetsBonus has operations in Mexico, Colombia, Uruguay, Chile, Italy, Argentina, Portugal and Spain. In June 2011, LivingSocial acquired Arabic daily deals site GoNabit, operating in Jordan, Lebanon, Egypt and the UAE. During the same month, LivingSocial acquired DealKeren, an Indonesian daily deals site, and Ensogo, featuring deals in the Philippines and Thailand. 2011 netted LivingSocial a total of $400 million in funding.

On July 17, 2012, LivingSocial opened its first physical store, LivingSocial Shop. The Shop offers savings on select merchandise.

In 2012, LivingSocial was the defendant in a class action suit regarding expired deals. LivingSocial agreed to settle for $4.5 million despite claiming the company had violated no laws.

On February 13, 2012, LivingSocial announced the creation of live events venue 918 F Street, a space for classes, pop-up restaurants, and other hands-on activities.

 

Staff

Jon Bax is Chief Financial Officer and Head of Business Development. Tim O’Shaugnessy is Chief Executive Officer, Aaron Batalion functions as Chief Technology Officer, and Eddie Frederick serves as President. Val Aleksenko is Chief Information Officer. Barry Judge is Chief Marketing Officer, Mike Imbriaco is Vice President of Technical Operations, Jake Maas is Senior Vice President of Corporate and Business Development, and Eric Eichmann is Chief Operating Officer. Don Rainey serves as Director.

 

Board

As a general partner of Grotech Ventures, Don Rainey serves on the company’s portfolio company boards, including LivingSocial’s. Ted Maidenberg, Tige Savage, and Jeremy Liew also serve as board members, the latter an investor as well.

 

Sources

http://dc.citybizlist.com/article/hungry-machineliving-social-devours-another-102m-cbl-0

http://corporate.livingsocial.com/ourhistoryoverview/a-brief-company-timeline/

http://blog.kelseygroup.com/index.php/2010/10/20/livingsocial-continues-to-differentiate-with-purchase-of-urban-escapes

http://www.techinasia.com/dealkeren-livingsocial

http://www.crunchbase.com/company/gonabit

http://www.livingsocialvouchersettlement.com 

https://reservations.livingsocial.com/about

http://www.crunchbase.com/company/livingsocial