What a Facebook IPO means for Silicon Valley

22 thoughts on “What a Facebook IPO means for Silicon Valley”

    1. A lot of it will be to pay for its infrastructure as I do believe they are going to need a lot of money to keep building out the services on top of that platform. I would not be surprised for them to spend a few hundred million of a couple of new data centers, perhaps around the world.

  1. Facebook should start an employee ‘startup fund’ where they match employees contribition up to 30 percent for straight equity ownership in the employees new business venture/idea. They can name it facebook franchise! This will enable them to stay connected with the millionaires they have created and participate in ideas and companies that are fresh, new and healthy. Facebook can even set up a pool of resources, enabling their franchise owners to efficiently own and operate tech companies.. Its a lot more work then meets the eye! Just thinking outloud…. bizTag

  2. Do we really need to explain this? In simple terms: it’s a boat load of money that will inundate the startup economy in Silicon Valley. Hang on to your hats. There!

  3. Your point about people cashing their chips and running is spot on. I think there’s quite a bit of immaturity at Facebook as far as the employees. You’ve got people who started there just out of high school or in their early 20’s who are now quite wealthy, but have always been since they’ve worked there. They don’t have the maturity to think long term, and perhaps now they won’t need to.

  4. Everything about this screams 2001. The only problem I see is that there are no Cassandra’s. Economics is a zero sum game, and if a lot is going to Facebook, it has to come from somewhere. Just how long can this bubble last? One year? Two years? What is the material difference between today and 2001?

    In 2001, the shattering revelation that destroyed much of the Internet Revolution was multi-plexing; in Social media, such a disruption is not impossible. Just ask Google, or Myspace, or Friendster, or Xanga; it is impossible to see what’s coming around the corner.

    My only point is that this is a bubble which will almost certainly collapse at some point. The question is, who will ride the wave and who will get caught holding the bag? It’s another massive game of high stakes poker, but it’s probably the best time to be an Entrepreneur in recent memory.

    1. “Economics is a zero sum game” is completely wrong. Wealth creation is just that: creation of new wealth. Also known as “growing the pie,” rather than fighting over a fixed pool of resources.

      Look around the world. The average American is 700% wealthier, in real terms, than 100 years ago. 300 million Chinese have moved from $1/day poverty into a middle class. All this without a corresponding drop in anyone else’s wealth. Today the world has more food than at any time in history. Also more food per person. More cellphones per person. More information.

      Rant complete, I agree that it is a bubble which will pop.

  5. I Do not agree with the premise of cashing in your million dollar chips for a new business start up. First of all a million dollars is not a lot of money in today’s economy. I would think about cashing in after I made a Billion dollars and I would definitely cash in after I accumulate a Trillion dollars. If I was a employee at Face Book I would just be happy that my investment was growing. I would be meditating and praying for new ideas on how to increase the addiction for Face Book Users. The way you make a Chocalate Chip Cookie better is by adding more varieties of chocalate to the same great batter.

  6. Been living in the valley long enough to have seen this before – bottom line is it will great to be a German or Italian car dealer or Realtor in Menlo Park or Palo Alto for the next two years, then what? In the old days we talked about innovation, now we’re just talking about overpaid ‘talent’ moving their money around (which will ultimately wind up offshore through buying expensive material products manufactured elsewhere). Do I have faith that this generation will risk their money in alternative energy, medical research, or some new paradigm-shifting technology that changes the way we help our own economy or the less fortunate? I’m skeptical, but propose the challenge.

  7. I think the startups that are focusing on making content creation, sharing, and consumption easier and more effective will be the big winners in the end. Content seems to be the constant across all valuable platforms.

  8. 100 Billion evaluation for 1 Billion revenue just doesn’t sound right. It just sounds inflated. One ban from US, India or any European government will take the company south

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