Here’s How VCs Did on Groupon Investment of ‘Like a Billion Dollars’


About 11 months after they made headlines for investing “like a billion dollars” in Groupon, 14 venture firms, mutual funds and other investors are looking pretty clever. As a group, the investors own 120.2 million Class A shares, which are valued at $3.14 billion at today’s closing price of $26.11 per share.

That’s a return of 3.3x on their $950 million investment. On paper.

(As good as that return sounds, it’s nothing compared to the return Groupon’s earliest investors stand to make. New Enterprise Associates holds 87,453,072 shares valued at $2.28 billion, for a potential return of about 154x, while Accel Partners’ growth fund holds 33,203,928 shares valued at about $867 million, for a return of about 43x.)

It’s going to take at least six months before we know what sort of return these investors will see on Groupon. If vocal critics are to be believed, Groupon’s shares could run up for a while, then crash back down to earth.

If the stock doesn’t fall below its IPO price of $20, investors will still do well, with a 2.5x return.

For the investors to simply get their money back, Groupon’s stock cannot fall below $7.90 per share.

The following slideshow shows how each of the investors did, including Andreessen Horowitz, Battery Ventures, DST Global, Kleiner Perkins, T. Rowe Price and Technology Crossover Ventures. For example, Kleiner Perkins paid $65 million on Jan. 11 for 8,230,456 Class A shares, which are currently valued at about $215 million.

The slideshow is based on share holdings disclosed by Groupon in a Nov. 2 SEC filing. The filing shows how much each of the investors paid for “Series G Preferred Stock,” and that each of those Series G shares converted into four shares of Class A common stock on Oct. 31. We did the math to figure out how much each investor’s shares are now worth.

(Photo by Andy Dean Photography/Shutterstock)

[slideshow]

[slide title=”No. 14: Guy Oseary Family Trust”]
Guy Oseary Family Trust
Investment: $1,999,994.00
Class A Shares: 253,244
Value on Nov. 4: $6,612,200.84

[slide title=”No. 13: Allen & Co.”]
Allen & Company, LLC
Investment: $3,999,989.00
Class A Shares: 506,488
Value on Nov. 4: $13,224,401.68

[slide title=”No. 12: Battery Ventures”]
Battery Ventures VIII, L.P.
Investment: $23,000,016.00
Class A Shares: 2,912,316
Value on Nov. 4: $76,040,570.76

[slide title=”No. 11: Andreessen Horowitz”]
Andreessen Horowitz Fund II, L.P.
Investment: $39,999,985.00
Class A Shares: 5,064,892
Value on Nov. 4: $132,244,330.12

[slide title=”No. 10: SLP Green Holdings”]
SLP Green Holdings, L.L.C.
Investment: $49,999,989.00
Class A Shares: 6,331,116
Value on Nov. 4: $165,305,438.76

[slide title=”No. 9: Maverick Fund Private Investments”]
Maverick Fund Private Investments, Ltd.
Investment: $50,000,020.00
Class A Shares: 6,331,120
Value on Nov. 4:$165,305,543.20

[slide title=”No. 8: DST Global”]
DST Global, Ltd.
Investment: $51,000,033.00
Class A Shares: 6,457,744
Value on Nov. 4: $168,611,695.84

[slide title=”No. 7: Greylock Partners”]
Greylock XIII, L.P.
Investment: $64,999,995.00
Class A Shares: 8,230,452
Value on Nov. 4: $214,897,101.72

[slide title=”No. 6: Kleiner Perkins”]
KPCB Holdings, Inc.
Investment: $65,000,026.00
Class A Shares: 8,230,456
Value on Nov. 4: $214,897,206.16

[slide title=”No. 5: Morgan Stanley”]
Morgan Stanley Investment Management
Investment: $75,000,030.00
Class A Shares: 9,496,680
Value on Nov. 4: $247,958,314.80

[slide title=”No. 4: Fidelity”]
Fidelity Investments
Investment: $100,000,009.00
Class A Shares: 12,662,236
Value on Nov. 4: $330,610,981.96

[slide title=”No. 3: T. Rowe Price”]
T. Rowe Price
Investment: $100,000,009.00
Class A Shares: 12,662,236
Value on Nov. 4: $330,610,981.96

[slide title=”No. 2: Technology Crossover Ventures”]
TCV Member Fund, L.P.
Investment: $150,000,029.00
Class A Shares: 18,993,356
Value on Nov. 4: $495,916,525.16

[slide title=”No. 1: Growth Fund of America”]
The Growth Fund of America, Inc.
Investment: $175,000,071.00
Class A Shares: 22,158,920
Value on Nov. 4: $578,569,401.20

[/slideshow]