bloomspot Raises $40 Million – Announces Guaranteed Performance-Based Model for Merchants

bloomspot (no, the lower case “b” is not a typo) has announced the launch of their performance-based business model that the company says will takes responsibility for the profitability of its merchant partners. This means that if the offer doesn’t live up to bloomspot’s predicted data in terms of profitability, they will make up the difference.

The company has also reported raising $40 million in funding.

The platform’s growing success is supported by the closing of $35 million in series B financing, co-led by InterWest Partners and Columbia Capital. Also participating in this round are Menlo Ventures, True Ventures, QED Investors and Harrison Metal, as well as individuals including Erik Blachford, Chairman of Butterfield & Robinson and former CEO of Expedia Inc., and Gary Parsons, former Chairman of Sirius XM Radio. Additionally, the company has closed $5 million of venture debt from Western Technology Investment.

You can read bloomspot’s press release in its entirety on Marketwire.

About bloomspot:

bloomspot is the leader in bringing the performance-based offer model to local merchants and providing a platform for customers who seek to discover their next local favorite. The company gives merchants critical visibility into customer behavior and ensures merchant profitability around each promotion. As a result, bloomspot delivers lasting value to its premiere member base by procuring the best quality offers and rewarding patrons who demonstrate ongoing loyalty to local businesses.