GoSteals, an online service that creates flash deals like those pioneered by daily deals site Groupon, launched today at VentureBeat’s DEMO Fall 2011 conference.

The company is an alternative to daily deals giants Groupon and LivingSocial, which charge fees for businesses looking to generate additional traffic from daily deals. Businesses pay out upwards of 50 percent of the revenue generated from a flash deal generated on those sites to daily deals sites like Groupon and LivingSocial in an effort to acquire new regular customers, which account for the lion’s share of any businesses’ revenue.

GoSteals uses Mediaspectrum, an online social commerce web service that can power daily deals services. So any business interested in creating a flash deal with GoSteals can do so automatically through a web-based service.

“GoSteals was founded to empower small businesses and their customers and help break the grip of the current “Daily Deal” players,” GoSteals chief executive Nick Barkett told VentureBeat. “By using GoSteals, businesses gain free exposure, new customers, and keep all the revenue generated in the process while customers have free access to a wide range of great deals, which they can reserve at no cost and no financial risk.”

Barkett founded the company earlier this year, which is located in San Jose, Calif. The company has raised $250,000 in seed funding. Barkett is the only employee at the company, through he has hired several freelancers and outsourced some of the company’s components.

The company is launching today in 12 cities this week as part of a closed beta.

GoSteals  is one of 80 companies chosen by VentureBeat to launch at the Demo Fall 2011 event taking place this week in Silicon Valley. After our selection, the companies pay a fee to present. Our coverage of them remains objective.