Facebook Adds Another $100 Million In Venture Lending, For More Servers
Saturday, May 10, 2008; 10:07 PM
Facebook has raised another $100 million in funding, to add to its previous chest of $360 million raised in the last six months, reports BW. This latest money will be used "entirely for servers," Facebook CFO Gideon Yu told BW. The money is from venture lending firm TriplePoint Capital, which is different than a venture capital round. Lebding rounds are mainly used by startups buying office equipment and servers. The slug of cash will help Facebook buy approximately 50,000 more servers, the story estimates. In October last year, Microsoft (NSDQ: MSFT) invested $240 million, for a 1.6 percent stake. Then Hong Kong billionaire Li Ka-shing has since invested a total of $120 million in the company as well.
This is not the first time Facebook has borrowed money from a venture lending firm...previously it had borrowed about $3 million or so from Venture Lending & leasing, for equipment and office supplies, as this SEC filing mentions.
This comes as some analysts have started pointing out the craziness of Facebook's previous $15 billion valuation. A good roundup of the dissent and counterpoints is here in this DealBook post..