Published On: Tue, Sep 26th, 2017

Groupon’s billionaire cofounder Eric Lefkofsky only lifted $70 million for his new company


Chicago billionaire Eric Lefkofsky has started 5 companies, zero of that would seem to lead him to found a association that’s perplexing to heal cancer. Yet investors only gave his newest, two-year-old concern, Tempus, $70 million in Series C appropriation to do only that.

No doubt they’re captivated to a company’s mission, that is to assemble vast quantities of genomic and clinical information from cancer patients so that doctors can use a information to improved personalize treatment.

But Lefkofsky — along with his longtime business partner Brad Keywell — also has a Midas touch. Indeed, nonetheless Lefkofsky has been embellished as both shining and during times, unorthodox, he’s finished a ton of income for his beginning investors.

Consider Groupon, a daily deals site that Lefkofsky cofounded in 2008. It hasn’t fared as good as a open association as some competence have hoped. When it IPO’d in 2011, it was value $16 billion; currently it’s marketplace top is roughly $2.5 billion. (Lefkofsky courted controversy, too, by reportedly pulling out scarcely $400 million during Groupon’s Series F round, withdrawal tiny operative collateral for a company.)

Still, a investment valid rarely remunerative for Groupon’s beginning backers, including New Enterprise Associates, that invested $14.8 million in a association and still owned 14.6 percent of it when it finished a open marketplace debut. Little consternation that NEA was partial of Tempus’s new $70 million round.

Revolution Growth, also named in today’s appropriation announcement, has also finished good by subsidy Lefkofsky and Keywell, who jointly possess Uptake, a Chicago-based predictive analytics association that has lifted $85 million altogether from investors and is reportedly valued during $2 billion. It was founded only 3 years ago.

Both companies are owned 50-50 by Lefkofsky and Keywell, who graduated from law propagandize together and have stranded together since, initial rising a ephemeral jaunty attire business called Brandon Apparel, before relocating on to emanate Starbelly.com, a startup that sole promotional t-shirts and coffee mugs. (It was acquired for $240 million in 2000 by a association that filed for failure a successive year.)

Others of their corner projects embody a publicly traded companies InnerWorkings and Echo Global Logistics and the Chicago try collateral organisation Lightbank, that has finished investments in some-more than 100 companies, including a gigs marketplace Fiverr.

Certainly, a founders didn’t need to launch nonetheless another company. But Tempus, now valued during $700 million, according to Forbes, clearly represented an event too big, and too meaningful, for Lefkofsky to resist.

Talking with a Chicago Tribune final year, Lefkofsky explained that he initial gravitated to a thought after his mother successfully battled breast cancer several years ago. He pronounced that during her diagnosis period, he found hospitals as distant behind in their use of information as tiny merchants had been before a appearance of Groupon.

Though Tempus faces copiousness of competition, it’s chasing after a fast-growing and potentially rarely remunerative market, too.  The marketplace for cancer and growth profiling will strech roughly $60 billion within 5 years, according to some estimates.

Lefkofsky — who is reportedly worth $2.2 billion — needn’t consider twice about his reputation, if he ever did. Still, given a high form of Groupon and a debate a arise and successive slip attracted, one imagines that switching gears competence also have appealed to Lefkofsky. Though he’s certainly unapproachable of Groupon, there’s zero like formulating another successful try to remind people that we can.

Featured Image: Bloomberg / Contributor/Getty Images

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