The Wall Street Journal has made waves this week with an article about daily deals firm Groupon – and specifically the way some of its early investors are selling their stock in the now-public company.
It notes that at least four of those early backers have “sold or significantly pared back their holdings in recent months”, at a time when Groupon’s share price has been sliding in value. Those investors include VC firm Andreessen Horowitz, which reportedly sold its Groupon shares this summer for a profit of nearly $14m on its original investment.
Big problems for Groupon? Well, the company certainly has challenges with its business model, but investors cashing in may not be quite as big a deal as has been made out.
Fortune rebuts some of the WSJ article’s claims, noting that other early investors have held onto their Groupon stock, and pointing out that “generating positive returns is a venture capitalist’s primary job responsibility”.
There is certainly a wider issue about Wall Street confidence in companies like Facebook, Zynga and Groupon – all of whom have faced well-publicised share-price speculation since going public – though.

