Shopping Site BuyWithMe.com Gets $5.5 Million Series A Funding From Matrix Partners
By Anna Johnson on January 27th, 2010‘Crowd sourced’ shopping-site-and-local-business-CPA-network-in-one, BuyWithMe.com, has received $5.5 million in Series A funding from venture capital firm, Matrix Partners.
BuyWithMe is based on an interesting concept: the company sells performance based advertising slots to vendors so they can offer volume based discounted deals (on goods and services ranging from flowers to haircuts) to BuywithMe members.
Each deal involves the promise of a discounted price, provided enough BuyWithMe members participate in the deal. If not enough people buy, the deal is off, and the business doesn’t pay BuyWithMe for the ad.
BuyWithMe is oriented towards businesses and customers in specific locations – currently, Boston, Washington DC and San Diego – and plans to use the funding to enter new markets and attract more members and businesses.
To date, BuyWithMe has largely grown its community via word of mouth, viral marketing, social media engagement, and in partnership with established local media such as Boston.com.
Said CEO and founder Andrew Moss:
“BuyWithMe’s popularity with users is primarily a result of the uniquely high deal quality our team has worked to curate on a daily basis which has already saved customers over $2 million since May 2009. In addition, the business has focused on superior customer service, a partner mentality with our merchant clients and engagement with each local community.”
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