BuyWithMe is a group buying website allowing consumers to leverage group buying power to get discounts with local merchants. The company is headquartered in New York City

New York City

New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...

. Funding was obtained via a group of angel investor

Angel investor

An angel investor or angel is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity...

s. BuyWithMe's first market was Boston, where restaurants including UFood Grill, Sel de La Terre and Stone Hearth Pizza were initial merchants. San Diego and Washington DC followed. As of October 2009, BuyWithMe serves 9 markets and has currently ~150k unique visitors per month according to compete.com. BuyWithMe's major competitor is Groupon

Groupon

Groupon is a deal-of-the-day website that features discounted gift certificates usable at local or national companies. Groupon was launched in November 2008, the first market for Groupon was Chicago, followed soon thereafter by Boston, New York City, and Toronto...

.

BuyWithMe was acquired by Gilt Groupe

Gilt Groupe

Gilt Groupe is a shopping website based in the United states, offering its members merchandise, clothing, home decor, delicatessen food, travel and activities. Gilt Groupe was founded in 2007 and has 3.5 million members...

 in November 2011, following significant staff layoffs in the previous month. It has been absorbed into Gilt Groupe's Gilt City daily deals division.

Business Model

BuyWithMe introduces one new deal every day in each of the local markets it serves. The deal is mailed to all local BuyWithMe subscribers, made available on the company's website and distributed through a network of group buying media partnerships. The deal only completes if a minimum number of consumers sign up, therefore assuring the merchant a minimum return. The value proposition for a merchant is the ability to attract new customers with a one time offer that, in theory, will have minimal impact on its brand equity.

Funding

BuyWithMe received $21.5M funding from Matrix Partners

Matrix Partners

Matrix Partners is a US based private equity investment firm focusing on venture capital investments. The firm invests in seed and early stage companies in the United States and India, particularly in the software, communications, semiconductors, data storage, Internet or wireless sectors.The firm...

 and Bain Capital

Bain Capital

Bain Capital LLC is a Boston-based private equity firm founded in 1984 by partners from the consulting firm Bain & Company. Originally conceived as an early-stage, growth-oriented investment fund, Bain Capital today manages approximately $65 billion in assets, and its strategies include private...

, top U.S. venture firms.