Friday, May 25, 2012

Capitol Broadcasting invests in Atlanta-based ScoutMob

Scoutmob, an Atlanta-based mobile application developer that delivers location-based deals in real time, just raised an additional $3.25 million in new financing. Capitol Broadcasting, a CED Member, is one of the investors participating in this round.

I've long been a supporter of Scoutmob--originally launched in 2010 in Atlanta, they quickly expanded operations in San Francisco, New York, and DC. There's three main reasons I enjoy the Scoutmob experience:

1. Great Design--the application, regardless of platform, is extremely easy to use, and beautiful.

2. Better for Merchants--Scoutmob, though offering deals, is better for merchants. Scoutmob works with merchants to customize deals that rewards customer loyalty. Yes, I know you're thinking "so... it's like Groupon... what's the deal?" The model is a bit different, however, and this is one of Scoutmob's major bets as they continue to build their local-based businesses in 13 regions. Other daily-deal sites will take at least 50% of revenues generated from the deal (meaning that many times merchants are often receiving a mere 25% of normal revenue for purchases made by deal customers).

3. Deals at the RIGHT Merchants--Scoutmob knows me. Okay, so, probably not on sight, though I have had the pleasure of meeting their DC team. Most of the deals cater to my demographic, and what's not to like about their special events (beer, bourbon and barbeque street party, for example)?

I've been encouraging the team to open up a Raleigh/Durham operation for the last year or so. Perhaps this investment from a major local player in the Triangle means that Scoutmob may finally open up operations here. *Squeal of excitement*

Other investors in this round include: AOL Ventures, Cox Enterprises, New Atlantic Ventures and private investor Ben Lerer. Scoutmob also announced an agreement with First Data Corporation for financial and other services between consumers and merchants. More coverage of this on WRAL Tech Wire.

Post written and authored by Jason H. Parker, Council for Entrepreneurial Development. Opinions his own. 

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