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Is your business prepared to embrace Groupon, the website that distributes daily coupons to its 20 million subscribers, if it comes to your town? Well, you might want to get ready.

Bloomberg News is reporting that the Chicago-based company is seeking venture funding that may value it at $3 billion.

Groupon has said it expects to serve 300 markets by the end of this year, up from the 230 or so it currently reaches. The latest round of funding could help the site bulk up its sales staff to sign on local businesses, Bloomberg said.

(For a primer on how Groupon works and how it could spur sales at your business see this Inc. article.)

Since its founding just two years ago, Groupon has raised $170 million from investors. Its last round, led by Mail.ru Group in April, gave it a $1.3 billion valuation. Other investors include Facebook backer Accel Partners and New Enterprise Associates.

Groupon's success has attracted more and more competitors, including LivingSocial and Groop Swoop, and copycats, especially overseas. The rapidly growing site has also started experimenting with deals outside of local small businesses, running its first national deal for Gap in August.

In addition to obvious investor interest, one venture capitalist speculated to Bloomberg that an acquirer could snap up Groupon in the coming months.

Last updated: Nov 8, 2010




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