New info on Facebook’s current financing round: Facebook did not take hedge fund money; round still open

November 1st, 2007

Last week, after Facebook announced Microsoft’s $240 million investment at a $15 billion valuation, some reported that Facebook had also taken an additional $500 million from two unnamed New York hedge funds at the same lofty valuation.

Today, we have word from a credible source that this is not the case — Facebook in fact did not close an additional $500 million in funding at the time of the Microsoft investment.

Instead, Facebook’s current financing round is still open. The company is seeking to raise $500 million in this round (or $260 million in addition to Microsoft’s $240), which will be their last.

While there are a lot of offers on the table, possibly including some hedge funds, no deal is done yet.

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