Bloomspot Collects $40M

8/9/11

San Francisco-based Bloomspot, a Groupon-style daily-deals service featuring high-end restaurants, spas, boutiques, and other “experiential merchants,” said today that it has raised $35 million in Series B financing and $5 million in venture debt. Interwest Partners and Columbia Capital led the venture round, which was joined by Menlo Ventures, True Ventures, QED Investors, Harrison Metal, and individual investors Erik Blachford and Gary Parsons. Western Technology Investment provided the debt financing. Bloomspot claims to overcome drawbacks in Groupon’s daily deals model by using algorithms to predict the level of consumer spending that will result from each promotion and guaranteeing their profitability for individual merchants.

Wade Roush is Xconomy's chief correspondent and editor of Xconomy San Francisco. You can subscribe to his Google Group or e-mail him at wroush@xconomy.com. Follow @

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