Facebook Rumored To Be Considering Additional Funding
Amit Chowdhry | Tuesday September 11, 2007 | 719 views
According to AllThingsDigital’s Kara Swisher, Facebook is considering raising additional funds for expansion or potential further acquisitions. Facebook’s first and only acquisition thus far is Parakey, a company created by two of Mozilla Firefox’s core programmers.
Considering the costs of maintaining Facebook between staffing, facilities, and server costs, I am not surprised that Facebook would be looking for more money. If I remember correctly, Facebook has roughly 40 million+ members, is expecting to make around $150 million this year in revenues (compared to $50 million in 2006), and is expecting to file for a possible IPO in the future. If Facebook decides to pursue an IPO, it would be around 2009 or beyond.
After Facebook received a $25 million investment a couple years ago, the company was given a $525 million pre-money valuation. Additionally, Facebook is planning on opening an office in London which would require quite a bit of expenditures too. Watch out U.K.-based social network, Bebo.
Current Facebook investors include Accel Partners, Greylock Partners, and Meritech Capital Partners. For anyone interested in reading further about Facebook’s business strategies, I recommend Fast Company’s article, Hacker. Dropout. CEO. The article has an interesting opening line where Zuckerberg is quoted saying, “I’m just lucky to be alive.”
Information Source:
[1] AllThingsDigital: How High Can You Count: New Facebook Fundraising
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Categorized under Accel Partners, Facebook, Greylock Partners, Meritech Capital Partners
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