Tag Archives: LinkedIn

The New Facebook Legacy

Facebook will not only produce new millionaires with its IPO next Thursday; it has already created a new generation of entrepreneurs and start-ups. The New York Times just published an article A Circle of Tech: Collect Payout, Do a Start-Up and a related video Facebook’s Network of Tech Tycoons which illustrates the fact.

A few Facebook alumni entrepreneurs

I had already showed the power of networks when I commented Once you’re lucky, Twice you’re good a book subtitled The Rebirth of Silicon Valley and the Rise of Web 2.0. You can check again the web of people connected ten years ago or so. I had done the same with the older and now mature EDA industry. This new NYT article shows new connections illustrated by the new figure below:

Let me just quote the article: “The history of Silicon Valley has always been one generation of companies gives birth to great companies that follow”…”This is the story line of Silicon Valley, from Apple to Netscape to PayPal and now, to Facebook.” … and finally, “the social fabric of Silicon Valley is a dense set of overlapping spider webs, meaning everyone is connected.”

In my article on the web2.0, I had also shown the value creation. There had been $800M of VC money invested for a $17B value creation (mostly paper value). The new table below adds another $100M of VC money, and the value creation is now… $113B!!

LinkedIn prices IPO

After LinkedIn IPO filing, here is more: LinkedIn priced its IPO at $32-35 and some additional data are provided in the cap. table. The new stuff is in green compared to my previous post:

– the company will sell 4.8M new shares (with an option for 1.17M more) and 3.0M from selling shareholders raising $146M after fees (and more than $180M if the option is exercised).

– the list of selling shareholders is provided, which gave another piece of new info:

– two founders (Eric Ly and Konstantin Guericke) sell some of their shares so that we now know they own respectively 1.3% and 0.9% respectively. We know nothing about Allen Blue and Jean-Luc Vaillant.