SmartBargains, an online shopping site that features discounted brand name merchandise, said it secured $33m in its first round of funding, led by Highland Capital Partners. The company will use the funds to expand its inventory and set up its internal infrastructure. Other investors include America Online, Berkshire Partners, Dorset Capital, General Catalyst, Madison Dearborn, and the Gordon Brothers Group. The company also said it had reached an agreement with America Online to be a main tenant of AOL Bargain Basement, a new domain of Shop@AOL exclusive to members. AOL senior vice president Katherine Borsecnik has joined the SmartBargains board of directors.For more information, visit the company website at