Groupon's REAL Revenue Last Quarter Was Not $645 Million

There has been a consistent error in the reporting on Groupon's financial performance: Its real revenue is nothing like the number that's tossed around by most news organizations (including us).

Conor Sen at Minyanville points out that Groupon's often cited $645 million in revenue for the first three months of this year is gross revenue. As in, that's all the money Groupon takes in from deals.

Of that, it keeps $270 million, which is Groupon's net revenue number.

So, Groupon's net revenue for the year will be something like $1.2 billion or more. Still impressive, but considerably less than what people are expecting.

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See Also:

• CHART OF THE DAY: Groupon's Massive Revenue And Massive Losses
• The Weird Groupon IPO -- The SAIcast Discuss
• WHY WAIT FOR THE IPO? These 13 Groupon Execs And Investors Have Already Cashed Out To Tune Of $870 Million

Groupon's REAL Revenue Last Quarter Was Not $645 Million

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CHART OF THE DAY: Groupon's Big Raise Isn't Even The Biggest This Year

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When it's all finished, Groupon could have the second most money in its coffers of any venture backed startup in the last 20 years.

But so far it's not even in the top ten of pure venture capital raises in history, even with its big $500 million round, disclosed today.

Heck, it's not even the biggest this year. That honor goes to Better Place, the electric car startup, which raised $350 million earlier this year.

You might be saying, "isn't $350 million smaller than $500 million?" It is, but the chart below is the top ten  "new equity" venture capital raises in history. The chart comes from Dan Primack at Fortune who got the data from Pricewaterhouse Coopers and the National Venture Capital Association.

Since Groupon founders are taking $345 million out of this round, only $155 million of the money raised is new.

However, if Groupon raises $450 million more, as has been reported it could, and it all goes into the company, then Groupon will beat out DreamWorks for the top spot.

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CHART OF THE DAY: Groupon's Big Raise Isn't Even The Biggest This Year

Backlink: http://feedproxy.google.com/~r/typepad/alleyinsider/silicon_alley_insider/~3/1T9JIHEP1uA/chart-of-the-day-biggest-vc-investments-ever-2010-12

Actually, Groupon's revenue run-rate is now more than $1 billion a year, so Google's only paying 5X revenue. And som...

Actually, Groupon's revenue run-rate is now more than $1 billion a year, so Google's only paying 5X revenue. And some of the company's new products could be vastly more powerful than the "deal of the day" model Groupon grew up on.

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Actually, Groupon's revenue run-rate is now more than $1 billion a year, so Google's only paying 5X revenue. And som...

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See The Other Startups Founded By Groupon's Soon-To-Be Billionaires

If reports are to be believed, Google is about to buy Groupon for $6 billion.

When that happens, Chicago-based angel investors Brad Keywell and Eric Lefkofsky will clear close to $3 billion between them.

(Lefkofksky owns about 30% of the company. Keywell, 10%.)

For their next trick, the pair have formed a new angel-investing firm called Lightbank.

With Lightbank, Keywell and Lefkofsky are betting millions of dollars on a series of startups in Chicago, the midwestern home of successful startups FeedBurner, Groupon, Threadless and 37Signals.

Eric tells us Chicago is part of a larger story about a "migration" of Internet startups "away from the Valley."

"When we built our first shopping cart in 1999, it took 4 developers. Today my 11 year old son can download an open source shopping cart in 10 minutes. Because the reliance on technology has gone down, the other attributes of business become more important: hard work, sales. Those attributes tend to be population specific. Chicago, New York – These places wil have a great run. This is their moment in the sun"

Eric and his partner Brad have already invested in 8 companies and plan to invest in several more.

"They are studs," says New York angel investor Chris Dixon.

Click here to learn about Lightbank's Chicago startups >>

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See Also:

• Chicago To Silicon Valley: It's Our Time Now, Pal
• What Founders REALLY Care About When They Choose Their Investors
• Startups: Find Out Who To Pitch In Just 5 Minutes With This New Tool

See The Other Startups Founded By Groupon's Soon-To-Be Billionaires

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