Facebook IPO Anticipated to Spark Investment in Tech Start-Ups

The Facebook IPO is expected to be a good thing for the start-up community. On May 18, Facebook shares, offered at $38 per share, saw their first day of trading on the NASDAQ Global Select Market under the symbol “FB.” The Facebook IPO is expected create about 850 new millionaires, which could create a new class of angel investors looking to invest in other startups and help them build on the popularity of Facebook.

That’s already been the case with several former Facebook executives who have turned to investing in start-ups, backing companies such as Instagram Inc., Spotify Ltd. and Flipboard Inc. In addition to their new millions of entrepreneurial dollars to invest, Facebook employees, current and former, have a wealth of experience and connections to offer to the start-up community, including knowledge on integrating a product or service with Facebook, ensuring that the social aspects of a business are working with Facebook, or knowing the relevant people.

According to PrivCo, a research firm that specializes in private companies’ financial data, of Facebook’s 3,700 employees, about 600 are expected to become millionaires from the IPO and an additional 250 former employees are millionaires or soon will be. That’s a good thing for the tech start-up scene!

This post was authored by Amina Kaal.


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