Deal of the day- Groupon files IPO, looks to raise $750M – RCR Unplugged
“The firm also raised more than $1B in venture capital, but is not actually profitable in its current state.”
How can Groupon possibly not be profitable, considering how much money they pull in?
Consider what $1B can acquire (rough estimates):
- 15 thousand employees
- 250 thousand servers
- 50 billion SMSs or e-mails
- or 200 million Big Macs
What’s wrong with the picture?
If the money mainly goes to marketing I understand it could cost anything, but that’s because brokers overcharge. Just look at Facebook ads that easily can cost $1 per click (first hand experience). That’s simply insane.