Benchmark is obviously in plenty of hot companies, too, including Twitter and Zipcar [which neither KP or Sequoia has backed]. Yet Groupon is another â€œhotâ€ company that youâ€™re not involved with. Why?
Right or wrong, in both group buying and in the membership-buying space, we had strong concerns about the barriers to entry. That may have been a wrong perspective. We met with a lot of these guys. But thatâ€™s why we stayed out.
What do you think now that Groupon ostensibly has a billion-dollar plus valuation?
Iâ€™ve heard incredible things about the company. I wouldnâ€™t have anticipated that they would do this well. Long term, I wonder whether the margin on a deal can be maintained when 10 [copycat] companies are calling on that same small business.