Most entrepreneurs consider funding for their business at some stage. However, the effectiveness of that funding is a hotly debated topic – such as a cash injection can propel growth, or, if incorrectly spent, it can accelerate the road to failure and even bankruptcy.
County Finance Group have cleverly created an infographic that looks at one of the biggest social media tech success stories over the last decade – Facebook, and outline the correlation between funding and growth in terms of number of users and revenue generated.
The relationship between funding and growth is rather interesting, and within the first few years of starting a business many owners consider the funding process.
It really makes sense to accelerate the businesses growth. But funding can be very risky indeed for both investor and owner. The infographic below looks into this, mainly the impact funding had on the revenues and user base of Facebook, which was a startup that has turned into the largest social network ever.
The infographic shows a few charts covering funding, users, and revenue. In 2007 when Facebook began it started to take off on university campuses. Majority of its users were only students. But then Microsoft saw the user base start to change as Facebook grew in popularity and demographics. Facebook did not recieve any investment under £200 million. If you look at the funding graph you will see investments came in from Reid Hoffman and Peter Thiel, the largest invest came in January 2011 by Digital Sky Technologies and Goldman Sachs totalling $1.5 billion.