Facebook Turns Down Funding That Would Give Them $4 Billion Valuation
Facebook CEO Mark Zuckerberg recently had a board meeting about accepting additional funding that would give the company a $4 billion valuation. The company decided against the funding because they don’t need it. Several reporters have been accusing Facebook of having a “high burn rate” so they need the funding, but all of these sources are “totally wrong” according to a source with VentureBeat.
The social network now has about 200-250 million monthly users that are uploading 2,000 photos per second. Facebook has over $200 million in the bank as of right now which they can run off of for the next two years. TechCrunch wrote that Facebook received several funding offers from private equity firms that were pegging the social network’s valuation at $2 billion.
Last year Facebook made $300 million in revenue and reported that this year they are beating their projections by 70% which would put revenue at almost $500 million. This would make Facebook profitable. The company also has a focus on cutting costs by having engineers publish reports on how infrastructure is managed. Impressive.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry