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Groupon Founders’ Master Plan: Build More Groupons Tech News and Analysis

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With the news that Groupon is filing IPO, people are poring over the fine details and wondering what it means. There are plenty of questions to ask: how should you feel about the fact that the company lost $413 million last year? Is the company’s valuation too exuberant? And what about the discovery that the majority of the $946 million in funding that the company raised recently has been used to pay early investors?

That last part is particularly interesting, and entirely true: according to the filing itself, two of the company’s co-founders — serial entrepreneurs Eric Lefkofsky and Brad Keywell — used Groupon’s winter funding round to cash out shares to the tune of $451 million.

The duo were there right at the beginning, helping Andrew Mason build and fund Groupon when it was still a community action site known as ThePoint.com. What are they going to do with all that cash now?

It turns out that the answer is simple: build more Groupons.

Or, more accurately, they plan to apply the lessons of Groupon’s success to other companies through an investment vehicle called Lightbank.

via Groupon Founders’ Master Plan: Build More Groupons Tech News and Analysis.

Written by Kees Winkel

June 3, 2011 at 16:25

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