How Much Equity Did Peter Thiel Facebook Receive In 2004?

2025-10-14 20:04:26 136

4 Answers

Yara
Yara
2025-10-15 17:48:53
Quick fact: Peter Thiel invested $500,000 into Facebook in 2004 and received about a 10.2% stake at the time. That made him the company’s first outside investor and earned him a board seat, which mattered as much as the cash for credibility and guidance.

I like this detail because it shows the scale gap between early valuations and outcomes — a few hundred thousand bought significant influence in something that eventually grew into a tech giant. Even though his share got diluted in later rounds, that initial position was pivotal, and I always smile thinking about how those early moves shape tech history.
Isaac
Isaac
2025-10-15 22:18:44
To be precise: in 2004 Peter Thiel invested $500,000 and received about 10.2% equity in Facebook. That figure is the commonly cited number from early financing records and contemporaneous reports. Put another way, the deal implied a post-money valuation of around $4.9 million.

I find this neat because it highlights how powerful timing and conviction are in venture investing. Thiel’s money wasn’t just cash — it was a signal that helped Facebook attract subsequent funding and grow fast. Over time his stake diluted as the company raised more capital and issued stock to employees, but that first slice was a defining moment in Facebook’s origin story, and it still fascinates me every time I read about early startup rounds.
Jack
Jack
2025-10-16 15:54:12
Back in the startup gossip circles I followed the Thiel-Facebook deal closely, and the headline that stuck with me was: $500K for roughly 10.2% in 2004. The math lines up — 10.2% for $500,000 implies a post-money valuation near $4.9 million — tiny in retrospect, huge for a scrappy college-born operation trying to grow.

What I love about this story is how it combines money with mentorship. Thiel didn’t just give cash; he gave a board seat and validation. That helped Facebook move from a campus project to a serious company that could recruit engineers and close later rounds. Over the next several years his percentage was diluted by subsequent financings and stock grants, but the early stake was the seed of everything that followed. It’s the kind of origin story that still gives me goosebumps when I think about startup mythology.
Finn
Finn
2025-10-17 03:23:29
Wild tidbit: Peter Thiel wrote a $500,000 check to Facebook in August 2004 in exchange for roughly 10.2% of the company. That $500K bought him a post-money valuation of about $4.9 million for the whole company, which in hindsight is delightfully tiny compared to what Facebook became.

I still like telling this one at parties because it shows how a single smart early bet can change everything. Thiel was the first outside investor and took a board seat, which gave Facebook credibility and helped them attract talent and later rounds. Over the years that 10.2% got diluted as more investors came in and employees were granted stock, but that initial move is classic venture lore. Pretty wild to think about now, and I still get a little thrill picturing that early negotiation.
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