E11: Groupon's Rich Heise: He Quietly Built $35B Of Companies

Jan 26, 2026

Rich Heise, Chicago tech investor and entrepreneur who founded Magnitude Networks and backed companies like Groupon and Echo, recounts his Silicon Valley and Midwestern journey. He talks about timing in tech, building repeatable business models, navigating IPOs and partnerships, and why he keeps launching startups. He also shares stories about resilience, community rituals like Old Man Hoops, and managing wealth and legacy.

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ANECDOTE

The Point Pivoted Into Groupon

Andrew Mason pitched The Point to Eric and Rich, they funded it, then reshaped it into Groupon amid the 2008 recession.
Timing, social distribution, and recession-driven consumer hunger for deals made Groupon explode.

INSIGHT

Luck Multiplies Execution

Rich emphasizes that luck and external conditions are essential components of outsized success.
Founders must still recognize and capitalize on luck when it appears.

ANECDOTE

Early Groupon Exploded And Found Liquidity

Groupon hit roughly $1B revenue in year one and received a $6B Google offer; they also sold private shares to Yuri Milner.
Rich and others sold into the IPO and captured liquidity as valuations raced higher.

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In this conversation with Ravin and Al, tech investor extraordinaire Rich Heise shares his journey from founding Magnitude Networks in 1995 to navigating the dot-com boom and beyond with Groupon.

He discusses the importance of timing in business, the challenges of family dynamics, and the lessons learned from his experiences with Starbelly and Inner Workings.

Rich emphasizes resilience, adaptability, and the impact of education on personal development, discussing the evolution of several companies including Echo, Media Bank, and Groupon.

They explore the challenges and triumphs of navigating IPOs, the dynamics of partnerships, and the role of luck in business success. The discussion also touches on personal motivations, community building through sports, and reflections on political issues and media bias.

Disclaimer: The Forged in America podcast features personal stories, experiences, and opinions from hosts Al Goldstein and Ravin Gandhi. This content is for informational and entertainment purposes only and is not investment advice, financial advice, solicitation of investments, or any form of professional recommendation.We strive for accuracy, but mistakes can happen and are unintentional. Nothing discussed should be relied upon for making financial, business, or personal decisions. Always consult qualified professionals before acting on anything you hear.Past performance or results mentioned do not guarantee future outcomes. Listeners are responsible for their own choices.

NOTE: A few clarifications from E11 regarding points mentioned in this episode, brought to our attention after publication:

Rich was not a co-founder of InnerWorkings (INWK), Echo Global Logistics (ECHO), or Groupon (GRPN). He was an early investor and board member in each company. Public filings for all three companies (including S-1s) list their respective co-founders.

Andrew did not reach out to Rich, which Rich clarified during the conversation. Groupon’s peak market capitalization was approximately $18–19 billion, not $28 billion.