4 People You Never Knew Made Millions From Facebook


4 People You Never Knew Made Millions From Facebook's IPO

Facebook turned a few into billionaires, but many into multi-millionaires from the recent IPO. Although no number has been confirmed as to how many individuals Facebook turned into millionaires, rumors have spread saying over 1,000. As a result, this has created a lot of buzz in Silicon Valley with other industries such as real estate agents and car salesman gearing up for the new millionaires to begin spending their fortunes. The majority of the new Facebook millionaires are employees that received stock or stock options as incentives, but some other unusual names have also surfaced. Take a look at four people you may never thought would have made millions off Facebook.

David Choe

David Choe, an L.A. graffiti artist, painted murals on the walls of Facebook headquarters in 2005 and 2007. Hired by Facebook's president at the time, Sean Parker, Choe was given the option to either be paid for the work, approximately $60,000 at the time, or take company stock. Although Choe thought Facebook was "ridiculous and pointless," he decided to take the stock instead of the cash. It appears Choe's intuition paid off. According to ABC News, the stock today is valued around roughly $200 million dollars. This equates to nearly a 3,333% ROI, assuming the stock was originally worth $60,000.


The famous front man of the hit band U2 is not only a musician, but also a Managing Director and Co-Founder of Elevation Partners, a private equity firm focused on investing in entertainment and technology companies. In 2009 and 2010, Elevation invested roughly $210 million into the social networking site. At the time of the IPO these shares had skyrocketed to a valuation around $1.5 billion. Not all of this is Bono's cash though. The exact amount has not been confirmed, but could be in the range of $40 million. Elevation Partners also currently has holdings in Forbes, MaketShare and Yelp.

Mark Pincus

Founder and CEO of social gaming company Zynga, Mark Pincus was an early angel investor in Facebook. In 2004, according to CNBC, he invested approximately $40,000 in the startup that has now ballooned into about $186,000 million. The two companies (Facebook & Zynga) are closely tied together. The SEC S-1 statement released pre IPO shows Zynga accounts for roughly 12% of Facebook's revenue and nearly all of Zynga's revenue is dependent on the social media giant. Pincus is a veteran in the dot.com space. He has started five companies and has over two decades of experience.

Dr. Edward Zuckerberg

Father to Mark Zuckerberg, Dr. Edward Zuckerberg is a dentist in Dobbs Ferry, N.Y. running his own practice. In 2004 and 2005, Dr. Zuckerberg provided working capital for Facebook and was issued an option to purchase 2 million shares with an expiration of one year. The option was never exercised, but in 2009 the Facebook board issued 2 million Class B common stock to Glate LLC, a company controlled by Dr. Edward Zuckerberg. At the IPO price of US$38, Dr. Zuckerberg's shares were worth an estimated $76 million.


The IPO turned out to be a huge disappointment for the investing community and many retail investors lost money as a result. This didn't stop early investors from striking it rich. Mark Zuckerberg alone has sold around 30 million shares for about $1.13 billion. Early angel investor Peter Thiel has also sold nearly 17 million shares worth $633 million. Unfortunately, this is common with many IPOs. Early investors and company insiders sell large portions of their shares and cash out big, leaving the retail investors to buy the very shares insiders are selling. Facebook still has a strong business model and revenue of around $1 billion dollars. If you believe that Facebook is a company here to stay for the longterm, the shares may currently be at an attractive price.
Related Articles
  1. Professionals

    5 Career-Killing Facebook Mistakes

    Facebook might be a great way to show off those cute pics from your vacation -- but your page isn’t so great if it hurts your career.
  2. Investing

    The Top Businesses Nurtured By Y Combinator

    We look at the top startups that were incubated at Y Combinator, one of the world's most popular business incubator firms.
  3. Economics

    Is Facebook Positioned for Long-term Success?

    Facebook is the world's dominant social ecosystem, with a massive reservoir of user photos and data
  4. Professionals

    How to Create a Professional Brand on Facebook

    Facebook isn't going away, which means you can't ignore it. Because of it's size, it can be a great venue to build a professional brand and get noticed.
  5. Entrepreneurship

    Mark Zuckerberg Success Story: Net Worth, Education & Top Quotes

    Learn about Mark Zuckerberg, the founder and CEO of Facebook. Understand where he came from and what in his life helped him achieve success.
  6. Entrepreneurship

    7 Entrepreneurs Who Became Successful in their 20s

    Understand how entrepreneurs can come from any age group. Learn about seven entrepreneurs who reached success and fame in their 20s.
  7. Professionals

    Top 5 Coding Camps To Launch Your Career

    If you have been following the NASDAQ over the past few years then you know that the technology sector has been on fire. This is great news for anyone looking to land a job at a technology company. ...
  8. Professionals

    Who Are the Brains Behind Facebook?

    These are the top people making Facebook what it is today.
  9. Investing News

    Apple’s New Business: Bonds

    Apple and Oracle are using their massive cash piles to buy up corporate debt. With bond markets looking increasingly rickety, what effect could this have?
  10. Stock Analysis

    Are These America's 5 Best CEOs?

    Do great leaders lead to great investment opportunities? Here's a few to consider.

You May Also Like

Hot Definitions
  1. Purchasing Power

    The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing ...
  2. Real Estate Investment Trust - REIT

    A REIT is a type of security that invests in real estate through property or mortgages and often trades on major exchanges ...
  3. Section 1231 Property

    A tax term relating to depreciable business property that has been held for over a year. Section 1231 property includes buildings, ...
  4. Term Deposit

    A deposit held at a financial institution that has a fixed term, and guarantees return of principal.
  5. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s loss, so that the net change in wealth or benefit is zero. ...
  6. Capitalization Rate

    The rate of return on a real estate investment property based on the income that the property is expected to generate.
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!