Facebook Headed For New Round of Capital
Posted by Nick O'Neill on September 11th, 2007 9:49 AMAccording to Kara Swisher Facebook may be going for another round of financing to build up their war chest. The whole discussion now is over how much Facebook will be valued at during this round. In 2006 Facebook was valued at $525 million and received $25 million in funding. If they go for a comparable round at a new valuation of say $3 billion, Facebook would add $150 million in cash.
With such a large round, one has to wonder what Facebook is preparing to do. Additionally, any further investment round would be a true signal that Facebook is deciding to go with the IPO route. Any acquisition after another round would set records. This also signals that Facebook may not have much of an intention to be highly profitable in the coming year. Maybe they should build up enough cash to buyout a larger entity! World domination is at hand Facebook fans! What do you think Facebook is going to use this money for?
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[...] in talks with Facebook to make an investment for a 5% stake in Facebook. Just weeks ago rumors of a new round of financing for Facebook surfaced. According to the Wall Street Journal article, the new round of financing would value [...]
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