That $200 million round LivingSocial is raising? It turns out the daily deals site could raise significantly more than that.

Daily deals site LivingSocial is raising a big new round that will go toward financing company operations, not cashing out existing investors.

“There’s still a couple of big shoes to drop,” said one person with knowledge of the situation, saying that the new money coming into the round was from institutional investors but not new venture firms.

When asked if the round would eventually close at more than $200 million, he responded, “Oh yeah.”

The person said all “major” existing investors are participating, declining to specify who is taking part.

Company investors include Grotech Ventures, Revolution, U.S. Venture Partners, Lightspeed Venture Partners, Amazon Inc. and T. Rowe Price.

Although the new LivingSocial round is still being formed, one thing is for certain–the money will go toward the company’s operations. That stands in contrast to the late-stage financing of more than $900 million raised by Groupon in January, just five months before its IPO filing, in which nearly all of the cash went to existing investors to buy up their shares.

via LivingSocial Waiting On More ‘Big Shoes To Drop’ To Close Round – Venture Capital Dispatch – WSJ.