There's no question Facebook raising $500 million in financing from Goldman Sachs and Russian investment firm Digital Sky Technologies is meaningful for the company.
It's a massive vote of confidence — Wall Street believes in its business model. Perhaps most importantly, this cash will allow Facebook to grow and better compete with the likes of Google without having to go public.
It can ramp up hiring. Facebook only has 2,000 employees, just a fraction of those at the likes of eBay, Yahoo or Google. And not only can Facebook hire more engineers and ad sales execs, it also has the cash to steal top hires from rivals like Google.
This money will fuel acquisitions. Facebook could use this kind of cash to buy a company like Google's AdSense — the kind of technology it needs to deliver the 1 trillion display ads it'll serve this year.
All in all, this money is funding Facebook's growth into an even bigger superpower.
And this money could allow some investors and employees to cash out without Facebook having to go public.