Tomahawk, WI 10/01/2013 (BasicsMedia) – Facebook Inc (NASDAQ:FB) went through a very tough period last year since it carried out its IPO. Not only was the stock performing dismally and leading many to question whether the company had made a mistake to go public, or it had been overvalued, but it now had to handle the departure of a number of its top executives and employees. Most of these employees opted to put up their own venture capital funds. A few of the employees who have left FB in the past one year are its Product manager and Product Lead, Justin Shaffer and Greg Badros respectively.

Whenever a globally recognized company such as FB loses its employees, especially those in the higher positions, a lot of concern is raised by investors and the public at large. The belief is that they know something about the company’s present and the future and are opting to look for better opportunities elsewhere. This may be true or not, depending on the company in question. But for FB, it is proof that the social media continues to provide people with opportunities in the area of venture capital, unlike what people get in other industries.

FB’s Future Lies in Venture Capital Funds

FB is now looking at the world of venture capital as it moves ahead in its growth. The company has made an about-turn from the turmoil of last year, both in terms of personnel and financially. It is in partnership with a number of venture capital firms. It has funded or contributed towards some of these VCs such as Kleiner Perkins Fund and FbFund. Most of the startups it is funding are those whose products are similar to FB’s. Thus far, FB has been successful in raising close to $271 million from venture capitalists.

A company of FB’s stature must do everything within its power to ensure that it doesn’t suffer from loss of talent. This involves embracing venture capital to raise the money required in order to finance ideas brought forth by its employees. Finances are needed in order to turn these ideas into actual products which will bring in more revenue to the company. FB won’t be the first technology firm to run a venture capital fund. Other firms which already have theirs include Amazon, Google, Intel, and Microsoft. Apple is yet to start running its own venture capital fund.

FB Must Retain Top Talent for Future Growth

The future growth and expansion of a company such as FB is dependent on its ability to retain the top talent it has at its disposal in the form of employees. Employees considered to be top talent can only remain in a company such as FB if they believe that their ideas are being used to lift the fortunes of the company, and they are being rewarded accordingly. And the best way of ensuing that this is maintained for the long term is by FB putting up its own venture capital fund from which employees will be the biggest beneficiaries.

I fully support this plan by FB to put up its own venture capital to support startups and provide a better motivation for its current crop of employees.

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