Groupon IPO: A Concise Two-Line SummaryJune 4, 2011 10:25 am
We spotted this today:
“Their Series F and G capital raises, which occurred in April and December of 2010, raised a combined $1.08 billion. Of that $1.08 billion, $150 million went to the company for working capital purposes. The other $930 million? Paid back to founders and early backers by buying their shares from them.
So a company that owes $230 million more than it has, and appears to be burning through $100 million or more a quarter, is using money raised from later investors to pay back early investors?”
Statistics Source: MinyanVille