Facebook Borrowing $100 Million for More Servers
Facebook is borrowing $100 million to accommodate growth on the site. The money, from venture loan firm TriplePoint, brings the amount raised to around $350 million.
The site has grown quickly and needs around 50,000 more servers to handle the load. Facebook has over 70 million active users and around 109 million monthly visitors.
According to Business Week, Google and Microsoft need a lot of server space. Google has at least a million servers and adds 500,000 per year. Microsoft is adding 200,000 servers per year.
While Facebook keeps expanding, their revenue is rumored to be at about break even. Last year they were said to bring in $150 million and plan to double that figure this year. They have more than 500 employees.
Here’s a short history of Facebook investments:
- 2004 – $500,000 from PayPal co-founder Peter Thiel in an angel round.
- 2005 – $12.8 million in venture capital from Accel Partners, $25 million from Greylock Partners and Meritech Capital Partners.
- 2007 – Microsoft invested $246 million for 1.6% share in Facebook and Hong Kong billionaire Li Ka-shing invested $60 million.