GSV Investment Shoots Facebook Value To $70 Billion

We informed you a little while back that Facebook would be worth in the region of $100 billion, ahead of its IPO next year. Facebook has just sold a chunk of shares to the investment firm GSV Capital Coporation and the amount is shaping up to meet the estimated IPO figure.

GSV themselves went public earlier this year and has a reputation for investing in privately help companies, The LA Times has reported. GSV Capital announced that they purchased 225,000 shares from Facebook at a price of $29.28 per share. This works out at about $6.8 million worth of investment into the social networking giant, which pushes its value to a reported $70 billion.

Back in January, Digital Sky Technologies and Goldman Sachs invested $500 million into Facebook, giving it a value then of $50 billion. This new investment of almost $7 million by GSV is 15% of their portfolio, and as a knock on effect surged their shares up by 30% on Monday after news of the big investment. GSV trades on NASDAQ under the symbol GSVC, according to Mashable.

The investment outfit described Facebook as “a one-of-a-kind business which has created enormous network effects”. GSV also recently injected some of their cash into Kno, a digital textbook firm that raised $46 million last year. The value of Facebook seems to change almost every day, but the way things are going that estimate of $100 billion looks very realistic when the IPO comes around early 2012. Will you invest when the social networking giant goes public?