Facebook Rumored To Be Considering Additional Funding

Posted Sep 11, 2007

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