Its greater fool investing. The last round probably had a lot of "We're going to IPO in a year" which means that last round is expecting to get their payday on

Its greater fool investing. The last round probably had a lot of "We're going to IPO in a year" which means that last round is expecting to get their payday on an IPO and, frankly, future company performance be damned. I'm not as skeptical as some on Groupon's future I think they still have a vast amount of room to grow. But this lack of a focus on fundamentals is how bubbles get made.