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Where Facebook got its funding


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Posted

[b]February 2004
[/b]
Mark Zuckerberg, Dustin Moskovitz, Chris Hughes and Eduardo Saverin launch The Facebook from their Harvard dorm room.

[b]June-July 2004
[/b]
The fledgling social network receives $500,000 from Peter Thiel, president of Clarium Capital. Then current social champ Friendster is rumored to make a $10 million bid for the company, but Zuckerberg rejects it.

[b]December 2004
[/b]
Almost one million users at Harvard, Stanford, Columbia, and Yale.

[b]May 2005
[/b]
Thiel and Accel Partners invest $12.7 million, giving Facebook an $87.5 million valuation. Number of active users: 5.5 million.

[b]September 2005
[/b]
The Facebook shortens its name to simply "Facebook."

[b]March 2006
[/b]
Facebook reportedly shops itself around to buyers for $2 billion.

[b]April 2006
[/b]
Investors including Accel, Thiel, Greylock Partners and Meritech raise $27.5 million. Current valuation: $500 million.

[b]Sept. 2006
[/b]
Yahoo (YHOO) supposedly makes a $1 billion bid -- Facebook rejects that, too.

[b]Dec. 2006
[/b]
Thiel says Facebook is worth $8 billion. The social network now has 12 million-plus users.

[b]April 2007
[/b]
20 million active users.

[b]October 2007
[/b]
Microsoft (MSFT) invests an unheard of $240 million, giving it a 1.6% stake and Facebook a valuation of $15 billion.

There are now more than 50 million active users.

[b]November 2007
[/b]
Hong Kong businessman Li Ka-Shing, whose companies make him one of the largest operators of container terminals, invests $60 million.

[b]January 2008
[/b]
European Founders Fund invests $15 million.

[b]March 2008
[/b]
Ka-Shing invests another $60 million, effectively doubling his stake to $120 million. Money from Microsoft, Ka-Shing's second investment, and European Founders Fund bring brings the total amount raised from this round to $315 million.

[b]May 2008
[/b]
TriplePoint Capital reportedly loans Facebook $100 million.

[b]Aug. 2008
[/b]
Early employees sell stock options. Over 100 million people now regularly log-in.

[b]January 2009
[/b]
Over 150 million active users.

[b]February 2009
[/b]
Over 175 million active users.

[b]April 2009
[/b]
Facebook reportedly rejects funding at $2 billion and $4 billion valuations. Over 200 million active users.

[b]May 2009
[/b]
Digital Sky Technologies (DST) invests $200 million with a valuation of $10 billion.

[b]June 2009
[/b]
DST buys back up to $100 million of Facebook employee shares.

[b]September 2009
[/b]
Over 300 million active users.

[b]November 2009
[/b]
Elevation Partners invests $90 million. Annual revenues of $775 million and profit of $200 million.

[b]December 2009
[/b]
Over 350 million active users.

[b]February 2010
[/b]
Over 400 million active users.

[b]June 2010
[/b]
Elevation Partners invests another $120 million, bringing its total investment to $210 million.


[b]July 2010
[/b]
Over 500 million active users.


[b]November 2010
[/b]
Accel Partners sells an unspecified number of Facebook shares.

[b]December 2010
[/b]
Reports indicate Facebook's annual revenues of up to $2 billion and profit of roughly $500 million.

[b]Jan 2011
[/b]
Goldman Sachs invests $450 million and DST invests $50 million, putting Facebook's valuation at $50 billion, a new high. (Goldman plans to raise up to $1.5 billion more to sink into Facebook, from its high-net-worth clients.) Moskowitz reportedly sells a substantial number of shares on the secondary market. The social network now reports more than 600 million active users.

Cumulative funds raised, excluding loans: $1.3 billion. With Facebook sitting on $2 billion in the bank after raising $1.3 billion, the total return on investment, if crudely calculated for today alone, would be 53.8%. Of course, large, later rounds of funding have allowed early investors and employees to cash out at ROIs far greater than 53.8%. The number is only worth noting since Facebook is often mentioned in tech circles in the same breath as Google (GOOG), which has a whopping $34 billion in cash reserves right now.

Facebook, in other words, will have to grow its business several times over, and perhaps become an even larger company (it has roughly 2,000 employees now, to Google's nearly 20,000) to book that kind of income. Goldman Sachs and its investors are hoping, then, that they're right in thinking a $50 billion valuation and two-year lock-in for Facebook shares will, in 2013, look like the bargain DST got with its investment at a $10 billion valuation in 2009.


[right]Souce: CNN Money[/right]

Posted

U present all the details in best possible way...wer do u get all these frm, I've always liked ur posts  you rock you rock *=: *=:

Posted

[quote author=chotu gadu link=topic=142364.msg1621010#msg1621010 date=1294779071]
U present all the details in best possible way...wer do u get all these frm, I've always liked ur posts  you rock you rock *=: *=:
[/quote]

everytime if possible I post the source to the bottom. That is where I read it from.

Posted

[quote author=srikanthuserid link=topic=142364.msg1621019#msg1621019 date=1294779202]
everytime if possible I post the source to the bottom. That is where I read it from.
[/quote] sHa_clap4 you rock you rock you rock *=:

Posted

*=: *=: *=: you rock you rock

Posted

[quote author=srikanthuserid link=topic=142364.msg1621019#msg1621019 date=1294779202]
everytime if possible I post the source to the bottom. That is where I read it from.
[/quote]U've got a real taste dude...keep up the good wrk...will look frwrd fr mre frm u...

Posted

*=: *=: *=: *=: *=: Gud to c u back dude. For some reason I was thinking about Face book and how it makes money. Still don know how it generates revenue. if possible post something on it as well  @3$% @3$% @3$% @3$%

Posted

[quote author=Tadi Matayya link=topic=142364.msg1622498#msg1622498 date=1294795255]
*=: *=: *=: *=: *=: Gud to c u back dude. For some reason I was thinking about Face book and how it makes money. Still don know how it generates revenue. if possible post something on it as well  @3$% @3$% @3$% @3$%
[/quote]

Hi

I don't have any statistical data to prove how it valuates to be 50 Billions. But, here I can tell you something on it. As you know valuation is done on all the assets they have it.

For this kind of social network sites what are assets?

1. Investments they put in till now from the investors or else where.
2. Data centers, offices or any property.
3. Number of employees working on or off shore for this company
4. Money that come annually by advertising, games or else what they get it from
5. On the top of all how big the network is and how many users you have it make a big deal.

and the competition among investors make it 50 Billions.

This is personally my evaluation. Please correct me if I went some where wrong.

Posted

[quote author=srikanthuserid link=topic=142364.msg1623027#msg1623027 date=1294800000]
Hi

I don't have any statistical data to prove how it valuates to be 50 Billions. But, here I can tell you something on it. As you know valuation is done on all the assets they have it.

For this kind of social network sites what are assets?

1. Investments they put in till now from the investors or else where.
2. Data centers, offices or any property.
3. Number of employees working on or off shore for this company
4. Money that come annually by advertising, games or else what they get it from
5. On the top of all how big the network is and how many users you have it make a big deal.

and the competition among investors make it 50 Billions.

This is personally my evaluation. Please correct me if I went some where wrong.
[/quote]
u r right n in facebook's case point 5 is more appropriate ani na feeling.  but only doubt is how does it gets revenue to survive every day ani may be games but r they big enough to run this monster  sCo_hmmthink sCo_hmmthink sCo_hmmthink Facebook lo ad's ekuva vundav anukunta kada

Posted

[quote author=Tadi Matayya link=topic=142364.msg1623036#msg1623036 date=1294800192]
u r right n in facebook's case point 5 is more appropriate ani na feeling.  but only doubt is how does it gets revenue to survive every day ani may be games but r they big enough to run this monster  sCo_hmmthink sCo_hmmthink sCo_hmmthink Facebook lo ad's ekuva vundav anukunta kada
[/quote]

I was just found online How FB made $$ 500 Million revenue in 2009 and here are the details.

Self-service ads, which appear on the right side of the screen on Facebook, accounted for about $250 million to $300 million. They look like this:

[img]http://static.businessinsider.com/image/4bf294be7f8b9ada44ce0100/facebook-self-service-ads.jpg[/img]



Engagement ads, which seek user-interaction (and sometimes feature user-endorsements), brought in $100 million. Here's one:

[img width=385 height=288]http://static.businessinsider.com/image/4bf294667f8b9a1245580000/facebook-self-service-ads.jpg[/img]



As a part of a 2007 ad deal, Microsoft sells some ads on Facebook. It's payment for the privilege reached $50 million in 2009. Finally, Facebook Gifts and other virtual goods account for between $30 million and $50 million in 2009. These figures are fairly consistent with Inside Facebook's March 2010


[right]Source: businessinsider.com[/right]

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