The debut of Facebook was supposed to be the rising tide to lift all ships, spurring more investments in Silicon Valley at even loftier valuations.
Then Facebook went public on May 18, and those expectations unraveled. Shares of Facebook closed on Monday at $26.90, more than 29 percent below the offering price.
As painful as it must be for Facebook’s new investors, it is also a black eye for Silicon Valley’s start-ups, hoping to raise capital. In the leadup to Facebook’s initial public offering, several start-ups raised tens of millions of dollars at high valuations. Quora, the question-and-answer site founded by a former Facebook executive, Adam D’Angelo, raised $50 million in May at a $400 million valuation — despite a lack of profits.
- Has Facebook Ruined Silicon Valley? (slate.com)
- What Is Silicon Valley? (pandodaily.com)
- The meaning of the Facebook IPO: “Silicon Valley is screwed as we know it.” (askpang.typepad.com)
- Golden Age of Silicon Valley Is Over With Facebook IPO (news.slashdot.org)
- ‘The Golden Age of Silicon Valley Is Over, and We’re Dancing on its Grave’ (theatlantic.com)