LivingSocial’s Valuation Could Soar to $3 Billion Following Next Funding

There were already indications that LivingSocial was out fundraising, but now there’s proof: The Washington, D.C.-based daily deals company has filed official paperwork saying that it is looking to raise up to $565 million in capital.

VCExperts.com is reporting on the document filed by Hungry Machine, the holding company for LivingSocial. The document serves as authorization for the fundraising, but doesn’t necessarily mean that the company has raised a dime.

In the filing, VCExperts explains that LivingSocial’s Series E will have an “Original Issue Price” of $5.651 per share with 100 million shares authorized–or equal to more than $500 million.

What’s more, if LivingSocial sells the round out, its valuation could soar to as high as $3 billion based on the 630 million authorized common shares.

A company spokesperson has not yet returned a request for comment. [Update: The New York Times is reporting that last week LivingSocial raised $400 million from existing investors like Amazon, Lightspeed Venture Partners and several new ones, including T. Rowe Price and Institutional Venture Partners, according to unnamed sources.]

LivingSocial is the second-largest daily deals site, trailing behind Groupon of Chicago, which recently raised almost $1 billion in capital. Groupon is considered to be worth roughly twice as much, or $6 billion, based on Google’s bid for the company late last year.

Right now, it’s a land grab to be the largest provider in the space.

Both LivingSocial and Groupon kicked off national TV ad campaigns during the Super Bowl, and have been aggressively building out their footprints worldwide. There’s plenty of competitors nipping at their heels, but nothing getting close to either company’s scale.

While both companies are considered revenue-generating machines, both appear to have the idea that it’s worth raising as much capital as possible while it’s cheap. An initial public offering is among the potential outcomes for both companies, and Groupon has been reported to be talking to investment banks about the logistics.

LivingSocial’s previous investors include Amazon.com, Lightspeed Venture Partners, Revolution Fund, Grotech Ventures and U.S. Venture Partners.


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