Groupon Raises $30M Series B

In December, Groupon, a leading retail deals site, raised a huge $30 million in Series B venture funding from venture capital firms Accel and NEA. The round was led by Accel, and NEA, who invested $5 million in early 2008 also participated. Groupon, which competes with the likes of LivingSocial, is a clear leader in the retail deals space. The site has editions for 26 major US cities and advertises one deal a day from a local establishment – a restaurant, gym, hotel, etc. The discount is large, but a certain number of members have to opt in to get the discount. If the quota is met, the discount is not given and Groupon doesn’t make a cut from the proceeds.

According to CEO and founder Andrew Mason, Groupon has been profitable since June. So why raise $30 million? Mason plans to use the expansion capital to add 50 new US cities in 2010 and get into the Canadian market. In a recent interview with CNET, Mason alluded to using some of the capital to build new technology, but did not give any specifics. Groupon grew from 10 employees to 120 in only 12 months, and has emerged as a clear leader in the retail deals space.