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Big day for Living Social – $10 for a $20 Amazon gift certificate January 19, 2011

Posted by jeremyliew in amazon, living social.
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Last year, Amazon invested $175M into Living Social, one of our portfolio companies. Today we’re seeing the first step of operational integration from that investment. Living Social is running a nationwide deal – $10 for a $20 Amazon gift certificate.

It’s blowing up on Twitter, and it’s going to be a big day for Living Social!

Amazon <3 Living Social December 2, 2010

Posted by jeremyliew in amazon, living social.
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As announced today, Amazon is investing $175M into Living Social. This investment will fuel the company’s growth on three dimensions:

  • International. Living Social recently bought a controlling stake in JumpOnIt, a local deals site in Australia, and have launched owned and operated sites in the UK and Canada. They’re actively looking at expansion into other geographies.
  • Lifestyle focused deals. The company recently launched Living Social Family Edition and Campus Deals to target deals to the lifestyles of particular demographics.
  • Vertically focused deals. Living Social recently launched a “near-cation” service called Living Social Escapes, focused on getaway travel. Their acquisition of Urban Escape is helping them create these amazing adventure experiences.

At Lightspeed, we continue to be incredibly excited about the growth prospects for the company, and increased our investment into the company, putting in an additional $8M. I posted earlier this year on why Lightspeed invested in Living Social, and our enthusiasm continues unabated to this day.

Local deals is a category whose growth has been extraordinary. This space didn’t exist two years ago and now is generated over $100M a month in revenue. Although there are many new entrants, and more each week, the two leaders, Living Social and Groupon, control more than 90% of the market share in the “local deals” space.  Furthermore, the share of the two leaders is increasing over time. This has rapidly become a scale players game. It is no wonder that Google is rumored to want to buy Groupon. As Living Social CFO John Bax said earlier, $6Bn could be cheap. There are only two companies at internet scale in the local deals space right now, and the major internet companies are all thinking about what their response to this category’s growth should be. Amazon has always been forward thinking and we’re excited to have them join the board and the investor base.

Congrats to Living Social for launching 25 new cities today! July 13, 2010

Posted by jeremyliew in living social, local.
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The local deals market continues to grow rapidly. I’ve posted before about why we invested in Living Social.  Today Living Social launched 25 cities, going from 27 cities to 52. Here is a snapshot of our coverage today:

Groupon continues to be the market leader, in 94 US cities and (through acquisition) 21 countries in Europe and Latin America.Today we put a bit of a dent in their lead, but we watch them every day.

We also continue to watch the new entrants, including Buy With Me, Tippr, DealOn and Homerun. While none of them are live  in more than 10 cities at the moment, some have announced plans to be in as many as 20 cities by year end.

Congratulations to Mandy, Randy and the whole sales team for their amazing efforts in getting ready for today’s launch.