> What does a website platform need $850 million more for?
Like others have commented, at least some of this money will be used to pay off initial investors with a nice profit. It's a kind of pyramid scheme, really, that ends with an IPO.
Like others have commented, at least some of this money will be used to pay off initial investors with a nice profit. It's a kind of pyramid scheme, really, that ends with an IPO.
This is almost certainly NOT happening.
No sane company sells prefs with 1x liquidation preferences to pay back investors at, relatively speaking, 0.05x. When companies want to help early investors out they facilitate a secondary transaction. These $850MM are, in all likelihood, going straight to the balance sheet.
That's not what Groupon did.
To clarify, do you mean some of the money will be used to buy back shares from early investors giving them a nice profit?
There's nothing very "typical" about a 850M raise at 30B. But Groupon infamously raised "Like, A Billion Dollars" of which only about 15% went into the company.
:-)