From what I have read, Instagram and Facebook used no ‘banker’ to get their $1 billion deal done.
I am no fan of Facebook for it’s Goldman and Morgan Stanley financial chumming it did at $50 billion and now at it’s IPO ($FB ), but at least on Instagram they did not pay the Wall Street tax.
If Kevin and team can avoid the ‘private wealth’ offerings of Goldman, Morgan and the rest of team TARP, they will have really contributed to a ‘turn’ in how Wall Street gets paid. The money that entrepreneurs earn that managed to do all the work outside the banks, should not go to the part of the banks that take the highest fees for the least amount of work.
I actually emailed Kevin of Instagram yesterday and told him how he could do it. Hopefully, he helps change not just how an entrepreneur gets to the $1 billion exit window, but more importantly long-term, how to keep that money away from the ‘Too Big To Fail’ banks that don’t deserve the honor of managing it after the fact.