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!