Here we are looking at Facebook Financing and the different rounds of investments it went through, both from angel investors, venture capitalists and companies, before the IPO.

1. December 16, 2013
Innovation & Entrepreneurship Basics
Craig Kershaw & Francesco Bonadiman

2. 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

3. First angel investment (Round 1)
● Summer 2004 → Peter Thiel
● $500,000 angel investment
● 10.2% of the company
● Joined Facebook's board

4. Accel investment (Round 2)
● April 2005 → Accel Partners
● $12.7 million venture capital investment
● Facebook valued at $98 million
● Accel joined Facebook's board

5. Venture capitalists (Round 3)
● April 2006 → venture capitalists
● Greylock Partners, Meritech Capital, …
● $27.5 million + additional investments
● Facebook value = $500 million

6. 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

8. 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

9. 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

10. Thank you!