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Dealfind for Business

In the Media

Dealfind Bags Valuation Of More Than
$100M In First Round

By Ty McMahan, Dow Jones ยท May 17, 2011

Canadian daily-deal site Dealfind.com Inc. has raised a first funding round at a valuation north of $100 million as it looks to expand to more than 100 cities and keep pace with its well-financed competitors to the south.

The $31 million round--the company's first from outside investors--included participation from Georgian Partners, Ontario Venture Capital Fund and Insight Venture Partners. The minority investment included an undisclosed amount of liquidity for founders Gary Lipovetsky and Michael Tulman, who founded the site in 2009.

"We were operating very successfully without outside funding and were being approached by investors on a daily basis," said Tulman, the company's chief executive. "We just looked at the numbers and realized we can expand a lot quicker than what we were doing. We took it to stay competitive with guys raising hundreds of millions of dollars."

Dealfind's largest competitors, Groupon Inc. and LivingSocial Inc., this year raised rounds of $950 million and $400 million, respectively. Meanwhile Gilt Groupe Inc., which operates a local-deals competitor called Gilt City, recently raised $138 million.

Toronto-based Dealfind plans to use the new money to grow its 140-person team and to aggressively expand in the U.S. and Canada. Whereas Gilt is expanding its business model to include full-price offerings, Dealfind plans to stay focused on people looking for a deal.

Most of the other deal companies are trying to put together something cool and fun to do," said Lipovetsky, the company's president. "They're trying to sell them things they wouldn't have paid for otherwise. What we're doing is offering practical deals, things like getting your home cleaned, your lawn cut or car detailed. What we're doing for consumers is getting them to spend less, while using these services more often."

Since last May, the site has sold more than 750,000 vouchers and has saved consumers more than $112 million, the company said. The company, which said it operates in 28 cities and plans to expand to more than 100 by the end of the year, declined to provide specific revenue figures.

The company's valuation is more than $100 million, Lipovetsky and Tulman said, but they declined to provide the exact figure.

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