Facebook IPO officially went live a few minutes ago. Astonishingly, when businesses around the world are struggling to find financing, Facebook continues to soar, and people everywhere are talking about it. You can’t buy the kind of media attention and PR Facebook gets.
What does this mean for the rest of the tech community?
A lot of Facebook investors just got really rich. Apparently Bono is supposed to make more money on his investment in Facebook than on his entire music career. (I haven’t double checked that, but it does sound too good). Investors love to invest. So startups expect more capital to be available very soon.
A lot of companies slow down on innovation after releasing their IPO. Facebook has beat the odds so many times before, I predict they will beat the odds again and remain successful. However, they have already announced to world that they are ready to acquire apps that fit into their growth and revenue strategy. They just purchased Instagram for $1 billion. So there is an opportunity for startups to solve the problems Facebook has, with a great possibility of being acquired.
It is likely Facebook will have more competition and it is likely there will be more startups starting up. The trend is that when one startup gets massive traction and success, others are quickly to try to follow.
What to do?
If you are already a startup company, the best thing to do is to ignore the hype and buzz. You know your space, you know your business, keep doing what you are doing. Focus on solving the problems you know best.