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A Ponzi scheme uses investors' money to disguise a complete lack of legitimate revenue. Groupon really is doing business, though it's trying to make its subscri
by prodigal_erik 15y ago
A Ponzi scheme uses investors' money to disguise a complete lack of legitimate revenue. Groupon really is doing business, though it's trying to make its subscriber value vs. cost structure look less fatal than it may be.
- Cushman 15y agoThey're doing business at a loss— they're doing negative business. So, okay, maybe they're going to become profitable (in real life) at some time soon in the future and we'll all feel a bit silly. But if that's the case, then why would they be using investment capital to pay off early-stage investors now— when they're just on the brink of profitability, starting an IPO, their value sure to skyrocket? What employee decides to cash out under these circumstances?