Latest Deal Terms for Groupon, Inc.

Justin Byers, Business Intelligence Analyst

So that makes three investments at more than $100 MM each, into three separate companies for Digital Sky Technologies (DST), all within the last 12 months. One of the latest companies to receive a boost from DST is Groupon, Inc., and this week we are going to take a look this latest round for them.

Groupon, Inc. is headquartered in Chicago, Illinois. The company operates a website that features daily deals on the best things to buy, eat, see and do in locations across the U.S. They do this by promising businesses a minimum number of customers, thus allowing them to offer cost cutting deals to their users. The company recently closed on an additional round of financing in the amount of $135 MM. Participating in this round were Digital Sky Technologies and Battery Ventures, L.P. The Deal Terms for this round were:

  • Filing Date - 04/16/2010
  • Liquidation Preference - Junior to other Series of Preferred Stock
  • Round of Financing - Series F Preferred*
  • Round Direction - Up
  • Multiple of the Liquidation Preference - .333x (33% of Original Issue Price)
  • Type of Preferred Stock - Conventional Convertible
  • Redemption at Investor's Option - No
  • Pay-to-Play Provisions - No
  • Cumulative Dividends - No
  • Price Per Share - $32.1225270
  • Total Amount Raised - $135 MM

* Noted as Series D in the VC Experts Valuation and Deal Terms Database, due to this is the fourth series of preferred being authorized (Series B, Series D, Series E, & Series F).

Being that the Liquidation Multiple was .33x (33% of the Original Issue Price) and the Liquidation Preference is "Junior" to all other Series of Preferred, could this be a signal that they are looking for an IPO in the near future? There were also 5,000,000 shares of "Nonvoting Common Stock" being authorized as well with this filing.