Facebook IPO

Facebook IPO will mean big business for thousands of smaller companies

Patrick Salyer doesn’t work at Facebook. He doesn’t own any of its stock. But he’s one of thousands of entrepreneurs in Silicon Valley and around the world who stand to make a lot of money when the Menlo Park social network goes public later this year.

Salyer, 30, is chief executive of Gigya, a Palo Alto startup that helps clients such as Nike and Home Depot reach customers via their Facebook accounts. He said Facebook’s Wednesday filing to go public — which unveiled a trove of data about the company’s revenue and customer growth — will step up spending on social media and benefit companies like his.

The number of startups that have sprung up in recent years to make money via Facebook’s platform easily runs into the tens of thousands, said Steve Garrity, co-founder of Hearsay Social. The San Francisco company helps big brands like 24 Hour Fitness manage relationships with customers using social networks.

Facebook IPO

Garrity and others say the coming tsunami surrounding Facebook’s initial public offering will impact that startup “ecosystem” in a number of ways. Facebook itself, flush with as much as $12 billion in post-IPO cash, could well go on a buying binge to plug holes in its offerings. And with as many as a third of Facebook’s 3,000 employees expected to become millionaires, valley veterans say a new generation of startups will be seeded.

Full Story Via Mercury News