Eurydice - 5:17 am on Apr 27, 2010 (gmt 0)

Facebook is headed for an IPO. Why? The VCs want their money.

Most people don't realize how much VC money has been put into FB.

775 big ones. Yep, $775 million. That many VCs have bet the farm on FB and they want to flip their money. Is it sustainable? Will the model work? Who gives a damn? They just want their money.

$775m sounds like serious money. It can't go wrong, can't it? Or can't it? A startup with that much VC money can't fail.

No, wait... I've heard this song before. Remember? It's a sweet little tune, and it goes like this (y'all can join in!):

"Gather 'round, children,
and hear the story
of a billion dollar startup
way down in Silicon Land.

Oh, yeah, it can't fail,
No way, it can't fail,
'cos so many VCs
got their hands in the pot!"

Yep, that song is "Good Ship Webvan!"

It was like the Yucatan meteor: the collapse of Webvan took the whole damned valley with it. 5,000 startups were destroyed in the dot.com crash.

It'd be pretty odd if Facebook kills Google and then collapses.