The company is led by former BankRate COO Cotter Cuningham, and has raised over $30 million in funding from Austin Ventures and a number of undisclosed angels. Their strategy is to roll up the top deals and coupons sites on the Internet. It’s not the sexiest business in the world, but it sure is profitable, apparently.
They’ve acquired four sites already – deals2buy, coupon7, couponshare and my personal favorite, cheapstingybargains.com. The company isn’t saying the terms, other than both cash and stock is involved. more deals are closing soon, they say.
The go forward brand for the company will likely be deals.com, a domain name they’ve acquired from Demand Media. The new site is still in development and Demand Media content remains on the site for now.
These types of rollups are becoming a specialty of Austin Ventures. They founded the hugely successful HomeAway rollup. And more recently they backed former MySpace CEO Chris DeWolfe’s social gaming rollup MindJolt. Both Tom Ball and Phil Siegel. The company is already “oh yes” very profitable, they say, and have revenues of $10 million – $20 million.