Rapid Growth

3Impact

6rd

%most popular domain on the internet

of all US-based internet traffic

8 billionEvery day, users spend

minutes on facebook

Valuation Over Time

All From This Guy????

Really?!

• “A good business model answers Peter Drucker’s age-old questions: Who is the customer? And what does the customer value?”

– Joan Magretta (Why Business Models Matter)

• “I initially launched it at Harvard because I wanted the service.”

– Mark Zuckerberg

Telling a Good Story

• Founded in 2004• Based around “Facemash”

Some History

• 1500 Harvard students registered in 24 hours

• Over 50% of undergrads within 1 month

• Other schools started asking for their own• Expanded to other Boston school and Ivies

“For the first two years, the only advice he gave me was don’t mess it up. The

motto is build something that people want. We were never that great at building a company. Now we’ve built this sort of hacker culture.”

Lessons Learned

No

Hacker Culture?

• Shared effort and knowledge • Make something bigger, better, and

faster than an individual can do alone.

"There's an intense focus on openness, sharing information, as both an ideal and a practical strategy to get things done."

Ahhh, Hacker Culture.

Execution, Creativity, and Big Bets

• 2005: “Zuck cared less about incorporating Amazon’s culture”

• 2008: Fowarded around an article on Genentech’s hardworking but “meaning”-based culture

More Culture

• Wanted:– Desire to build something cool– Learn how to build great products, quickly

• Required:– Raw talent (IQ, GPA, etc)– Ability to finish something– Technical ability

Hiring Strategy

CFO David Ebersman

• Lots of talent leaves

“Our goal isn’t necessarily to keep people forever.”

The Danger With Talent

Steve Chen (YouTube CTO)

Dustin Moskovitz & Justin Rosenstein

1 2 3 4 5

Meritocracy

See ya!

Umm, no.

“There’s a clear path of bodies”

Others– Platform director Ben Ling – Designer Katie Geminder– Designer Eston Bond– Data guy Jeff Hammerbacher– Marketing VP Matt Cohler– Top engineer Justin

Rosenstein– Cofounder Chris Hughes– COO Owen Van Natta– President Sean Parker– CFO Mike Sheridan– VP of Product Doug Hirsch– Cofounder Andrew McCollum– Cofounder Eduardo Saverin– Tricia Black (first VP of Sales)– TS Ramakrishnan (VP of Eng)– Nick Heyman (dir of

Operations)

Some of the Bodies

Gideon Yu – CFO20 months

Adam D’Angelo – CTO

4 years

Change in Leadership Style

Delegation of Responsibility

HighLaissez-FaireManagement

ProfessionalManagement

LowEntrepreneurial

ManagementBureaucraticManagement

Low High

Use of Formal Control Mechanisms

Sheryl Sandberg - COO

• The leadership side– No succession plan– Internal politics around Sandberg

• The money side– Profitability– IPO

Future Concerns

Questions?