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"Hilarious." – Daniel Hannan

Archive for the ‘groupon’ tag

Ironic Hipsters Lose $500 Million, Need More Money

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Check out Groupon’s S-1 when you get a chance. In less than 3 years, the company has accumulated losses of over $500 million.

I don’t doubt that there’s a sustainable business model buried beneath all the mirthful irreverence, but there are troubling signs that Groupon’s performance is deteriorating in mature markets– and it’s never a good sign when early investors have already jumped ship with nearly $1 billion.

Related:
The Wall Street Journal asks, “Will Investors Take Groupon’s Andrew Mason Seriously?

UPDATE: Brett Arends at MarketWatch writes,

During the dot-com bubble, I once heard a story from a venture capitalist about a start-up that wanted to be valued at a multiple of headcount. At $5 billion, Groupon would be valued at nearly 10 times accumulated losses. Who’s to say that’s too much?

Written by Moog Rogue

June 7th, 2011 at 4:08 pm