Zuckerberg Says Facebook Planning To Go IPO, No Need For Further Funding
“I know for a lot of companies the IPO is the endpoint or the goal,” stated Facebook CEO and founder Mark Zuckerberg. “For us it will be an event on the path to where want to get eventually.”
Over the weekend VentureBeat reported that Facebook was close to raising $150 millionin capital to buy back shares from employees that want to cash out on their work. A lot of the shares that were given to employees were valued at less than a dollar each, but the investors are rumored to be buying them for $10 each.
Before this round of funding, Facebook raised over $516 million. Peter Thiel invested $500,000 as an angel round. Accel invested $12.7 million in Series A. Greylock, Meritech, and The Founders Fund invested $27.5 million. And Li Ka-shing, Microsoft, and the European Founders Fund invested $375 million in Series C. Lastly Facebook raised $100 million in debt from TriplePoint Capital to help pay for their server costs.
Given Facebook’s revenues of about $550 million for this year, the company has been reportedly turning down funding with term sheets that would valuate the company from between $6-$8 billion.
It will be a few years before Facebook goes public. Facebook makes most of their revenue from advertising. They are working with about 70 out of the top 100 advertising companies to earn their revenue. Facebook’s revenue is expected to grow 70% higher this year compared to last year. The company will also be cash flow positive next year.
[via Reuters]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry