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Tag: Lightbank

  • Groupon Co-Founder Simplifies the Equation

    Many times, we see successful people get bogged down by day to day operations losing sight at what they are really good at and passionate about doing. Groupon co-founder Eric Lefkofsky is one of those people.

    As an entrepreneur, Lefkofsky has built several startups from the ground up, and has always had a talent for cementing the foundations of those businesses.

    Today, he announced he is stepping down from the management side of Groupon (of which he actually holds no official position) and allowing those in charge, like CEO Andrew Mason, to do what they do best and run the company.

    Formally, Lefkofsky is the Chairman of the Board at Groupon (and he will remain in this position), but as a co-founder, and one of the most active investors in the company, he has been consumed with helping out in any way he can. Currently, he feels compelled to put his talents and energies into his next project called, Lightbank.

    Groupon co-founder and chairman of the board, Eric Lefkofsky, comments on refocusing his efforts after the success of the company:

    My role has always been more complicated at Groupon, as I am a co-founder as well as its first investor. Andrew has been the founder and CEO since Day One, which has permitted me to act more like a super-active investor and director than a member of the management team. So unlike our other companies, there was no CEO to recruit, so I could eventually move on as Andrew was always in that role.

    When Groupon was a “young” company, Andrew and I wore a lot of different hats. Every time we hired someone new, we gave up a hat. Given the breadth of the team today, everyone’s hat is planted firmly on the right head, which has allowed me to focus on doing what I do best.

    I look forward to continuing to work with Andrew in my ongoing role as Chairman of the Board, but in the meantime, I’ve immersed myself in Lightbank and am focused on growing the company and working with Brad and the rest of the Lightbank team to try to define what it should be as it matures.

    Lightbank should be the Berkshire Hathaway of technology companies. I like the way Wikipedia defines it: “Berkshire Hathaway is an American multinational conglomerate holding company that oversees and manages a number of companies. The company averaged an annual growth in book value of 20.3% for its shareholders over the past 44 years.”

    Lefkofsky is one of the richest people in the World with a net worth of about $1.5 billion. Aside from being an early Groupon investor and co-founder, he is the author of Accelerated Disruption and an adjunct professor at the University of Chicago Booth School of Business.

    Lefkofsky’s newest project, Lightbank, is a technology investment firm he runs with partner, Brad Keywell. So far they have committed $100 million and funded $60 million with the business. There are about 20 companies they have either funded or started.

  • Will Groupon Founders Have Another Hit with Pawngo?

    Lightbank and Internet Pawn have announced that they have partnered to launch a new site called Pawngo.com, aimed at “reinventing the pawn shop”. In case you’ve never heard of either of these companies, Lightbank is an investment firm run by two founders of Groupon – Eric Lefkofsky and Brad Keywell. Groupon, as you may know, recently filed for its IPO.

    Lightbank has led a $2.3 million Series b round of funding for Internet Pawn, which is rebranding itself as Pawngo. It’s also backed by Daylight Partners and Access Venture Partners. PawnGo says it is co-headquartered in Denver and at Lightbank’s offices in Chicago.

    “Particularly in today’s economy, many people often find themselves in a bind and need short-term capital to overcome some obstacle they’re facing,” said Todd Hills, co-founder and CEO of Pawngo. “With the investment, support and expertise of Lightbank, we’re now able to bring this practical and more affordable financing option to consumers on a broad scale.”

    To use the service, consumers simply go to the site, enter a description of an item with a digital image and contact info (no credit details or social security numbers), and Pawngo will make a preliminary loan offer or buy estimate within a few hours. If the user accepts the offer, Pawngo lets you print an overnight FedEx shipping label to send the items directly to its “evaluation lab”. They also make boxes and packing materials available.

    When they receive the item, the company will contact the user with an evaluation and detailed offer. If it’s accepted, they wire the money immediately.

    Hills says that while some may view pawning as a last resort, it can be a “much more prudent form of borrowing” compared to alternatives. “Especially in the current tight credit market, why go into debt and put your financial future at risk with a conventional loan or credit cards?” he said. “Instead, our system lets you use the items you already own to get a loan that won’t get you into trouble down the road.”

    The company says that it has loaned over $1.35 million in 46 states to date. It has previously operated under not only the Internet Pawn brand, but also Boomerang Lending. PawnGo says its company mission is to “get you cash when you need it without any hassle and without the risk of going into debt.”

    Pawngo doesn’t check credit history or financial history. “We won’t bother you if you don’t pay,” the company promises. “We won’t report you to credit agencies, ever. Our customer service will be beyond your wildest expectations, always.” It also “guarantees” that its loan or buy offer for items will be better than any other pawn shop, online marketplace and online buyer of pre-owned merchandise.

    That’s quite a guarantee.

    The founders of PawnGo claim to have over 25 years experience owning and operating over 50 pawnshops.

    What do you think? Is there big demand for a new online pawn service of this kind?