Facebook Inc’s (FB) initial public offering is poised to create some 850 new millionaires, spawning a new class of angel investors looking to help other startups build on the popularity of the biggest social network.
While not all of the young and rich will plunge a portion of their wealth into emerging Web and mobile companies, investing has proved to be popular among early Facebook alumni. Instagram Inc, Spotify Ltd and Flipboard Inc are all backed by that group.
Even in an already frothy market, their capital and advice are in high demand because entrepreneurs need all the help they can get when it comes to reaching Facebook’s 900 million users, said Aydin Senkut, an early Google Inc executive and the founder of Felicis Ventures. Assuming Facebook holds its initial valuation for six months after the IPO, about $9 billion of restricted stock and options will be vested and available to sell by current and former employees.
