In a report by information technology news site Techcrunch, Facebook Inc would need to have a corporate venture group to retain employees who wish to start a venture capital fund or form a startup. Facebook has been seeing departures from several, and mostly prominent employees who had later on formed a new venture.
Two weeks ago, product manager Justin Shaffer bade goodbye and was rumored to start a venture capital fund. Facebook engineering and product head Greg Badros made an announcement that he would be leaving and indicated that he would be shifting his focus to investments. Former Facebook exec Chamath Palihapitiya had been recruiting talent for his new entepreneur-in-residence (EIR) program from Facebook.
The report deduced that since this was the trend seen in departing employees, Facebook could easily create an opportunity by building a venture capital brand. Its alumni had amassed USD271 million in venture capital funding since 2006. The first 6 months of 2012 saw a USD130 million venture capital funding raised by Facebook's former employees. Moreover, the venture capital group would allow company burnouts to work on the investing side or in an EIR program while figuring out what to do next.
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