Why would an engineer do this? Why not found the company yourself and skip the suits?

Looks like a paid vacation to South America for the right unburdened young web hacker, plus the "suits" in this case demonstrate a useful ability to impress powerful people.

especially in California - good luck with that

Groupon and its ex-employees appear to both be located in Illinois, according to TFA...

This is a really poor translation, not a joke