Groupon Appears in Valuation Rarified Air: $1 Billion
Wow. A site / concept that is barely 1 ½ years old that hits the $1 billion valuation mark? I had to see if I stepped into some worm hole that took me back in time to the late 1990’s. Apparently I have not and neither has Groupon who, by landing $135 million in an additional funding through Digital Sky Technology and Battery Ventures, has attained a standing that very few sites in the world can claim: a $1 billion valuation.
As reported at All Things Digital and the press release of this news:
Chicago/Moscow, April. 19, 2010–Groupon, the leading social commerce site, today announced that DST, a leading global internet investment group, will lead an investment round of $135 million in the Company. A portion of the investment will be used to fuel Groupon’s global expansion, and the rest will be used to facilitate liquidity for employees and early investors.
Good day to be part of that group for sure. Groupon started out as The Point by Founder Andrew Mason. For a Groupon history lesson check out this explanation of how Groupon got to where it is.
Just a reminder, Digital Sky Technology, the primary investor in this round of financing is that same company that put $200 mil into Facebook last year. To this point the company had received about $36 million in total with $30 million of that coming from Accel Partners and the initial approximately $6 million coming from an angel investor and New Enterprise Associates.
After watching an interview with Groupon’s Mason, it’s hard not to root for him considering his attitude and demeanor. He doesn’t act like the typical Internet high flier and his self-deprecating style (he says in the interview kind of under his breath that “It’s all a mistake”) makes him likable. In a world where bravado and chest-thumping rule the day, his approach is refreshing. Of course, once this kind of success hits you have to do a “wait and see” if it’s going to stick.
So despite many copycats in the marketplace Groupon moves on. It would be interesting to hear any stories from Pilgrims about using Groupon and your experience with it. Tell us in the comment section now.