Groupon Worth $1.2 Billion? Not So Fast
TechCrunch is reporting that the group buying site Groupon, which raised a $30 million round at a $250 million valuation in December from NEA and Accel Partners and has raised $35.8 million altogether, is raising more money right now at a stunning $1.2 billion valuation. You can read the story here. In light of the news, it might be interesting to contemplate the fate of some of Groupon’s predecessors, including the once-popular group-buying site MobShop, which raised $51 million from Marc Andreessen and Mayfield Fund before going belly up in 2001. As with Groupon, analysts loved, loved, loved the idea of MobShop. As with Groupon, MobShop had plenty of competitors. Know what? They all disappeared. Maybe it was purely bad timing. Maybe it was, a little bit, the sustainability of the concept, too. You decide. Is Groupon really worth $1.2 billion or are we heading down a well-worn path?
