

How did the VCs perform with the Groupon IPO? - efader
http://www.trendslate.com/2011/11/05/vc-firm-groupon-gains/

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hncommenter13
It's too soon to tell.

First, they generally can't sell shares for 180 days (the so-called "lockup
period"), so where the stock is trading now doesn't indicate much about where
it will be in 6 months.

Second, even once the lockup comes off, VCs (and other insiders) won't all
necessarily cash out at the same time without causing downward pressure on the
stock when it is distributed to their LPs.

Third, in a way, who cares? Most of them were pure dumb money in this case.
The majority of big-name investors participated only in the last $950M round
in Dec 10/Jan 11, which, as is widely known, went almost entirely into the
pocket of management and earlier investors. The new VCs added no value,
weren't on the board, and were just along for what they assumed would be a
short ride between their investment and IPO. It was a momentum bet, pure and
simple. One can certainly make money that way, but I doubt it's how they think
of themselves (or when they tell themselves when looking in the mirror). There
are times when VCs add lots of value. This wasn't one of them.

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joshu
That is the worst visualization ever.

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scrame
Seriously. What the hell am I looking at?

