Old news about Facebook raising $200m

http://bit.ly/rQ4l0

This round of financing put Facebook’s valuation at $10b.

Comments:

I see this as good news as:

-Facebook founders aren’t in it to make a quick buck. IPO prices often undervalue the company in order to create momentum in first day trading.

-No board set is given. This ensures minimal dissension amongst board members and the founders are free to follow strategic vision.

-No dilution of ownership. Employees are able to sell own stakes to DST instead of talking to private investors where valuations of the company can drastically differ.

-Diversity of investment in Facebook can certainly help Facebook solidify its market share overseas.

Internet Valuation Full Article

In my inaugural post, I offer the full article on Internet valuation that I wrote during the 08-09 academic year. The purpose of the article is to understand the valuation process of Internet businesses, specially first generation pure Internet companies. I will post updates as I continue my research into Web 2.0 valuation.

I never met a dot-com that I didn’t like