LivingSocial New Money

By: VC Experts Staff Writers

Hungry Machine, Inc., the holding company for Washington, D.C.-based social shopping site LivingSocial has authorized more than $500 million worth of new "Series E Convertible Preferred Stock", according to a regulatory filing (filed 03/31/2011) obtained by the venture capital research firm VC Experts.com. The authorization indicates the company is permitted to raise the funds but has not necessarily gathered that amount.

The Series E shares have an "Original Issue Price" of $5.651 per share with 100,000,000 shares authorized. There is a .5x liquidation multiple on all Series E Preferred shares. If fully subscribed, the Series E could value the company as high as $3 billion, based on LivingSocial's 630 million authorized common shares.

The fundraise only increases the fever-pitch of excitement surrounding discount online commerce websites like LivingSocial, which is number two to Chicago-based Groupon. LivingSocial raised one of 2010’s largest rounds of fundraising in December, pulling $175 million from Amazon.com. The round, a Series D, was topped off by an $8 million investment from Menlo Park, Calif.-based Lightspeed Venture Partners. The round brought rumors of a $1 billion valuation. Previously LivingSocial raised $49 million from Revolution Fund, Grotech Ventures and U.S. Venture Partners, which was distributed across six rounds of investment since 2008, when the company was founded.

View the filing and more detailed information on LivingSocial’s latest round of fundraising by subscribing to VC Experts Valuation & Deal Term Database.