We are all waiting for the IPO on Friday, worth at almost $100 billion in evaluation. I know of few acquaintances at Facebook Canada that will be really happy this long weekend. Along with many across North America who will become mega-millionaires overnight.
What makes me wonder about is the Post-IPO phase of Facebook. What happens when some of them (with options) are rich enough to retire? What will happen to the human intellectual property when the mega-millionaires don't have to work any more?
People work for Money
Majority of the folks putting in the hours are doing it to get paid. They move from one job to another for better pay, better opportunities and the challenges. Some move specially to a start-up to seek a better than average payout.
If you love what you do, you put in even more hours and it doesn't feel like work. That remains true anywhere. And it is true that not everyone cares for the maximum payout as there are other motivational non-monetary factors as well. There's a reason why some dread the retirement phase in their lives.
But those that love their work usually are more successful than the ones who consider it just as a job. But even they like to get paid (above average) for their talent.
Instant Millions, Baby
Some of the top talent that made Facebook what it is and kept it innovative all along when sites like Flickr, Myspace, and Orkut struggled will be instant millionaires on Friday. The aspect of launching a company and successfully taking it public is highly attractive challenge. highly respected and much needed in the industry. Hence, I assume with that accomplishment on their resumes, many will be moving on.
Sure, you can hire more top talent and even throw options but none of them will be capitalizing on them as much as the ones who did during the pre-IPO phase. The original Paypal crew is still the one investing in the hottest start-ups of our time. It takes a million to make few millions.
I have been closely involved with a start-ups (that got acquired or we worked closely with) during my days at IBM and I have seen many who gained from the acquisition move out as soon as their contractual obligations were completed. They went on to new projects and launching services that they really wanted to start. One even decided to retire at the age of 37.
The Facebook that we know is what it is because of these very people. That knowledge can't be replaced or bought. The post-IPO facebook will be more focused on revenue models and that might turn the idealists away as well. The work will need to be more accountable and the fun factor of the original start-up will be depreciated.
What will be the brain drain at the post-IPO Facebook? I am sure they are loyals who will stay. The executives will stay, because they are already rich and like the power. Others? You tell me.