_preview.pdf. Groupon Valued At $250 million. Multiple sources tell us that Groupon, the surging Chicago-based startup, was valued at $250 million when they closed their recent $30 million venture round with Accel Partners and previous investors.
In that post we wrote that “the company is going gangbusters,” but apparently that’s a bit of an understatement. Post round, the value of the company is at least $280 million. Groupon offers users deep discounts on products and services from local businesses. How much does Spotify cost to run? We analyse the numbers. [Update: I've revised this in the light of a long talk with the head of We7, who gave me some very insightful numbers.]
The other day someone came to talk to me who said they were looking at building an online music business, but wouldn't try Spotify's model. Why not? I asked. Because, they replied, its costs were vast.