[kees]

This business was riding on the wave of Groupon like deal sites.

The start-up was not so much about running a profitable business but about capturing the funding possibilities that came up due to the popularity and profitability of Groupon and its numerous clones.

[orangethirty]

It may seem that way, but we cannot simply say that this is a fact. The founders might have some plans that would turn this market on its head. Though, at the same time, I see where this sort of behaviour comes from. Its the same reasons Dropbox clones got millions of dollars in funding, even though their product is a straight copy (and crummier).