Facebook domination, part III
Facebook seeks a valuation of 10 billion dollars. They are looking to raise $50 to $250 M from investors. That means $250M will only buy investors < 2.5% stake in the company.
“The prevailing wisdom from other VCs was that Facebook would probably be capped at a $200-300M exit, and hence a 2-3X return was not high enough to justify the risk, given the youth and inexperience of the Facebook founders. ”
VCs didn’t spend enough time on Facebook.