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Bootstrapping: How Does Mark Zuckerberg Own 26% of Facebook?

January 27, 2011 by ei2admin

Facebook keeps raising more and more and more money. Over a billion dollars so far. Yet the founder, Mark Zuckerberg still owns an astounding 26% of the company. How can that be?

Quite simple really. Facebook always raised money on their own terms. Never because they had to. Facebook always had sufficient revenue to ensure they could control the fundraising process.

Bootstrapping doesn’t mean never raising money. It means only raising money on your terms – retaining control of your company.

If you’d like to talk more about bootstrapping, join us every Wednesday morning for the ATDC Bootstrapping Circle. We meet at 9:30am in the Entrepreneur Resource Center – first floor of Centergy.

(Thanks for Greg Branham of nFront Security for the link to the question on Quora)

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