Jan 11, 2011

Speaking of Groupon ...

I guess it's ironic that I unsubscribed from Groupon the day they announced they had successfully raised $950 million... however I also think this is one company that is hyped but not actually doing a good thing for vendors.   When you as a consumer buy a $50 coupon for dinner at a restaurant, Groupon keeps half ($25) and then the restaurant gets the other half ($25).   However- the eatery loses out long term because they do not get half off the food you buy and they still owe their suppliers, their vendors, their staff...of course they sign up so they get new customers and they are hoping you love their food so much you come back WITHOUT a coupon - but here's the thing- most people don't.   They are noticing that people will always go to eat at a new place with a coupon or discount because they are getting a deal, but rarely do they return until they have a deal/discount again.   So long term, this is actually degrading the business of the restaurant.   However, we all love a great deal, so enjoy it when you can!

Groupon Raises $950 Million [CONFIRMED]

Group buying site Groupon has confirmed earlier rumors that it has raised $950 million in a recent round of financing, a little more than a month after it rejected a $6 billion acquisition offer from Google.

Several venture capital firms and late-stage investors participated in the round, which values Groupon at $4.75 billion, including Andreessen Horowitz, Battery Ventures, Greylock Partners, Kleiner Perkins Caufield & Byers, Mail.ru Group, Maverick Capital, Silver Lake, and Technology Crossover Ventures.
Groupon will use the funds to further fuel global expansion, develop its technology, and pad the coffers of its employees and early investors, according to statement released Monday.
“We’re thrilled that Groupon has earned the confidence of some of the world’s most respected investment firms,” Groupon CEO and founder Andrew Mason said. “With their support, we will continue on our mission to change the way people shop locally and serve the world’s local businesses,” he added.

Read the press release here:

CORRECTING and REPLACING Groupon Raises, Like, A Billion Dollars

Investment to Continue Rapid Growth of Global Social Commerce Platform
CORRECTION...by Groupon
CHICAGO--(BUSINESS WIRE)--Please replace the release with the following corrected version due to changes in the investor list in the second paragraph.
“With their support, we will continue on our mission to change the way people shop locally and serve the world’s local businesses.”
The corrected release reads:

Groupon Raises, Like, A Billion Dollars
Investment to Continue Rapid Growth of Global Social Commerce Platform
Today Groupon announced that it has completed a $950 million round of financing. Groupon will use the funds to fuel global expansion, invest in technology, and provide liquidity for employees and early investors.
The financing consists of several venture capital firms and late-stage investors, including Andreessen Horowitz, Battery Ventures, DST, Greylock Partners, Kleiner Perkins Caufield & Byers, Maverick Capital, Silver Lake and Technology Crossover Ventures. Allen & Company LLC acted as financial advisor. Previous funding rounds were led by New Enterprise Associates, Accel Partners, Mail.ru Group and DST.
In the last year, Groupon has been called “the fastest growing company ever” by Forbes Magazine and “America’s best website” by one of Groupon’s television commercials. In 2010, Groupon:
  • Expanded from 1 to 35 countries
  • Launched in almost 500 new markets (from 30 markets in 2009)
  • Grew subscribers by 2,500% from 2 million to over 50 million
  • Saved consumers over $1.5 billion
  • Worked with 58,000 local businesses, serving over 100,000 deals worldwide
“We’re thrilled that Groupon has earned the confidence of some of the world’s most respected investment firms,” said Andrew Mason, founder and CEO of Groupon. “With their support, we will continue on our mission to change the way people shop locally and serve the world’s local businesses.”
About Groupon
Groupon, launched in November 2008 in Chicago, features a daily deal on the best stuff to do, eat, see and buy in more than 500 markets around the world. Groupon uses collective buying power to offer unbeatable prices and provide a win-win for businesses and consumers, delivering more than 650 daily deals globally. For more information, visithttp://www.groupon.com. To learn more on how to become a featured business on Groupon, visit http://www.grouponworks.com.

Contacts

Julie Mossler
Groupon
1 312-242-2033
Julie@groupon.com
Permalink: http://www.businesswire.com/news/home/20110110006746/en/CORRECTING-REPLACING-Groupon-Raises-Billion-Dollars

No comments:

Post a Comment