Owen Thomas has a nice piece on Facebook’s $100 million venture leasing deal with Triplepoint Capital that dispels the myths around this type of financing.
It’s worth pointing out that Gideon Yu did a similar deal while at YouTube. Triplepoint walked away with $6.5 million worth of Google stock thanks to the deal.
PE Week recently wrote about the re-emergence of venture lending and leasing and where that market is going. Subscribers can link through.
Henry Blodget posits that Facebook couldn’t get a $15 billion valuation on its equity for a further raise, citing the failure of its “Beacon” advertising campaign. I doubt this is the case. The company could likely attract all the “dumb money” in the world at an even higher valuation thanks to its ubiquity and name brand.
I would consider Yu’s move a smart bit of protection for shareholders as it prevents further dilution.