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Silicon Valley’s Private IPO Market – Eric Eldon Confirms Facebook Getting Liquid August 5, 2008

Posted by John in Technology.
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Eric Eldon editor at Venturebeat has confirmed his investigative story on Facebook. Yesterday Eric broke the ground on the story that Facebook is letting employees sell some of their shares.  Hey it’s all about getting liquid🙂

In a turn of events Eric also reports LinkedIn is doing the same.

What we have here folks is a mini or private Silicon Valley quasi-IPO market.  In the absence of any liquidity option the Silicon Valley VCs and private capital markets need an outlet.   This is self preservation of the Silicon Valley way.

I wonder what the implications are on a sort of mini-liquidity market?  Personally I think this is a good thing to fuel some innovation and reward.

All this is a pre-text to the posturing that Facebook will stay private and not be sold. One poison pill to take is keeping early employees happy and rich.

Lets hope that Facebook doesn’t cause the wealth problem being experienced at Google – the haves and have nots.   As Google approachs thousands of employees who are underwater in stock verses the handful who have FU money.    Facebook better be careful to make sure that new employees don’t feel alienated by the early guys getting rich in a private quasi-IPO.

Overall I’m a fan of liquidity.


1. Arnold Shwarznegger - October 9, 2008

Who is really a fan of liquidity? Come on now, get real.

2. Entreprenership Liquidity Market - The Private Privates - We need Liquidity But First Standardization « The SiliconANGLE - April 23, 2009

[…] has a great story about an emerging trend – a private liquidity market – a private Private market. I wrote about this trend last year in August 2008 when it was apparent that Silicon Valley was already doing it (well […]

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