Yesterday daily deal site Living Social raised a $110 million in financing. While the company had reason to celebrate, the recent round raised a lot of questions. One research firm, PrivCo, stated the round was less than great for employees as it sucked their option for liquidity, while also calling it an “emergency” round. In an internal memo to employees CEO Tim O’Shaughnessy acknowledged it was a down round but scoffed at the idea it was an emergency round. In terms of how it effects employees’ stocks, he stated very little. But he did state, in the event of an IPO, all preferred stock becomes common stock, and the preference stack goes away.” [Source: Fortune]