• Geek Wire, Thursday, August 11, 2011 10:12 AM

Particularly in niche areas, investors clearly believe there's room for more daily deal services. Zulily, which specializes in baby and children's products, just announced a $43 million venture capital round led by Meritech Capital Partners, GeekWire reports. Having now raised $53.6 million, Zulily has already outgrown three office buildings and ballooned from two co-founders to 240 employees since it was founded just 22 months ago.

"And now Zulily is putting a little extra rocket fuel in the tank," GeekWire writes. "Meritech, along with existing investors, such as Maveron and August Capital, obviously think that Zulily has what it takes to become the next big consumer Internet brand in Seattle." A source tells GeekWire that the valuation on the company in the most recent round was about $750 million.
"That's a jaw-dropping number, topping the market value of publicly-traded Seattle tech companies, such as RealNetworks, InfoSpace and Blue Nile." It would also put Zulily in the ballpark of Zillow, which went public last month and is now valued at $736 million.

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