[Editor: This article is partially written by Watson Xu of web20share.com on his Chinese post, translated by XingZhen Ren from BFSU.]

Twitter hits $1 billion valuation within 3 years. Facebook reached equal valuation with 2 years. Groupon, however, broke the record, it only takes a year and a half. On April 19th of this year, a consortium, led by DST (a Russian investment company), invested $135 million on Groupon, making the valuation of Groupon shoot up to $1.35 billion. As New York Times said, Groupon was the craziest the Internet company in history.

The business model in Groupon is that it only sales one product or service per day, and via daily updating and bulk-discount price, Groupon is able to attract mass purchasers and then, collect 50% of the transaction commission in return. Groupon creates a new Internet business model consists of e-commerce, social marketing and online ads.

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

What you get

Full access to all premium content and our full archives

Members'-only newsletters

Preferential access and discounts to all TechNode events

Direct access to the TechNode newsroom

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

Gang Lu

Dr. Gang Lu - Founder of TechNode. He's a Blogger, a Geek, a PhD and a Speaker, with passion in Tech, Internet and R'N'R.