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TAMPA — CrowdSavings.com raised $1.06 million from a fully subscribed $1.3 million capital offering, according to a company release issued Friday.
CrowdSavings offers its users discounts between 50% and 90% at nearby restaurants, spas, bars and the like by arranging deals with local business owners. One of its largest competitors is Groupon, which operates similarly.
Douglas Bauer, CrowdSaving's chief financial officer, says the newly raised capital will help CrowdSavings achieve its existing business plan, which, Bauer says, “includes continued expansion on a national basis.”
To that end, founder and CEO Chad Jaquays says the company already planned on entering the Atlanta market later this month, regardless of this offering's outcome. This new funding, Jaquays said, will help CrowdSavings “stay on pace.”
In addition to its capital announcement, CrowdSavings also says it has agreed to acquire Savvy Avenue, a competitor that is preparing to launch in Cleveland and Nashville later this year. Including this latest deal, CrowdSavings says it expects to be in more than 20 markets by the end of 2011.
Today, CrowdSavings.com operates in Tampa, Denver, Las Vegas, San Francisco, Austin, and Albany, N.Y. The company first began operations at the end of 2009, starting off with $150,000 in funding (see “Crowd Control”).
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