Craig Kershaw & Francesco Bonadiman December 16, 2013 Innovation & Entrepreneurship Basics
Jun 19, 2015
Craig Kershaw & Francesco Bonadiman
December 16, 2013Innovation & Entrepreneurship Basics
Introduction and initial funding
● Launched in February 2004● Mark Zuckerberg and Harvard roommates● First few months → Costs for the website
operations paid by founders (50%-50%)● Some advertisements to cover costs● Initially limited to Harvard students● 2006/09 → Everyone over 13
First angel investment (Round 1)
● Summer 2004 → Peter Thiel● $500,000 angel investment● 10.2% of the company● Joined Facebook's board
Accel investment (Round 2)
● April 2005 → Accel Partners● $12.7 million venture capital investment● Facebook valued at $98 million● Accel joined Facebook's board
Venture capitalists (Round 3)
● April 2006 → venture capitalists● Greylock Partners, Meritech Capital, …● $27.5 million + additional investments● Facebook value = $500 million
Microsoft investment (Round 4)
● October 2007 → Microsoft● Purchased a 1.6% share● $240 million (value = $15 billion)● November 2007 → Li Ka-Shing● Hong Kong billionaire = $60 million
Initial public offering (Round 5)
● February 2012 → IPO● Aim = raising $5 billion● After → Zuckerberg 22% share● Shares at $38 each
→ value = $104 billion
● IPO raised $16 billion
→ 3rd largest in U.S. history
Our vision
● Facebook did an amazing job!● Refused $1 billion from Yahoo
→ instant notoriety
● Keep control → Others can’t have majority● Seeked funding through angel investors
→ without selling away lots of shares
Thank you!