4 ms·

Original HN title: "950 million of 1 billion of Groupon's funding wasn't used to fund the company" This also stood out to me as an interesting claim from the a

by blahedo 14y ago

Original HN title: "950 million of 1 billion of Groupon's funding wasn't used to fund the company" This also stood out to me as an interesting claim from the article. Does anyone have a perspective on how that can happen without raising some sort of legal issue?

wmf 14y ago
This was pretty well documented when it happened in 2011. You can do anything you want in a private company if the shareholders agree. In this case, Groupon's existing shareholders agreed to roll around in big piles of money so that new investors could get in at any price.
- Sujan 14y ago
  Came here to ask the same question as blahedo. Especially as the claim in made in the article, but not expanded. Are there any sources for or reports on this?
  - wmf 14y ago
    Google for "Groupon series D" or "Grouponzi".
paul_f 14y ago
That sounds like a win to me. How can anyone fault the founders for taking that deal?
- wmf 14y ago
  Taking money off the table does tend to indicate a lack of confidence in the future of the company.