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Groupon is not a Ponzi scheme. In the process of raising money from late stage investors, Groupon has to say what the funds will be used for, which includes p
by amorphid 15y ago
Groupon is not a Ponzi scheme. In the process of raising money from late stage investors, Groupon has to say what the funds will be used for, which includes paying off earlier investors.
- Cushman 15y agoUsing investment money to pay off earlier investors while claiming to be profitable to drive further investment is the definition of a Ponzi scheme. They probably don't mean for that to be their business model, but it is what it is.
- amorphid 15y agoGroupon is making a fist ton of cash. If they stopped spending money on hiring and marketing, they'd be wildly profitable. Investors have access to all this information. Also, Groupon has a clear formula for growing and how long it takes that new business to become profitable. That is why they can raise so much investment. If you can come up with a convincing argument why Groupon is a Ponzi scheme, then call the law enforcement. You'll get on the news for sure!