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In the next few months Facebook will create over 1000 new millionaires. Is it to much too assume that many of them will get into inventing, which could actually
by agotterer 14y ago
In the next few months Facebook will create over 1000 new millionaires. Is it to much too assume that many of them will get into inventing, which could actually cause the opposite affect of what you're suggesting where there is even more money available?
- thechut 14y agoNot sure if you meant investing or inventing (or both). But either one of those could have interesting implications in the valley.
- agotterer 14y agoWhoops. Yea I meant investing. My assumption was that some part of a 1000 new millionaires would hopefully be putting some money back into the system through investments. I also think you'll see some people leave Facebook as they vest to go start companies of their own.
- gopsig 14y agoThe number of millionaires created and the amount they have available to invest are directly related to the stock price. If the price is low, shareholders won't sell, so there won't be new cash to invest in other startups.
- ppop 14y agoAt the rate FB is falling, there won't be 1000 new millionaires by that time
- agotterer 14y agoFB is still going to be worth $40B?. Its not $100B+, but there are plenty of people that are going to make a lot of money if they sell. Also check out Fred Wilsons response (http://www.avc.com/a_vc/2012/06/some-perspective.html http://www.avc.com/a_vc/2012/06/some-perspective.html). He makes some good points about the returns still being pretty damn good.
- jeffreymcmanus 14y agoIf you do the arithmetic, yes there will. At any rate, you don't need to be a millionaire to do venture investing.
- ppop 14y agoAt the rate FB is falling, it will be worth less than 12 billion in 3 months.
- lachlanj 14y agoIt's these kind of forward projections that cause booms and busts, ie. people assuming that housing prices will increase at a steady/regular rate over time. Just as we saw that this doesn't happen in a steady way, nor will facebook steadily decline over the next 3 months.
- theoutlander 14y agoPeople won't start investing necessarily. Look at the 10,000 millionaires that came out of MSFT in the Redmond area...... only a fraction are investors.