Facebook, the social networking giant, is now valued at $65 billion and has moved up 30 percent in the last six weeks,making it one of the most highly valued private companies around.
This high valuation is a function of scarcity of shares that has created a supply, demand imbalance, according to one venture capitalist.
"These values are being pegged on imperfect information. With that said though ... we're about 15 years into what I think is a 50- to a 100- year major innovation cycle. I think there'll be a small number of incredibly important consumer brands that will merge out of the first 25 years," Dana Stalder, general partner of the venture capital firm, Matrix Partners, that helped bring Apple public in the '80s, told CNBC on Friday.
"Facebook without question is gonna be one of those brands and already has become one of those brands. It has all the attributes in terms of reach, and consumer engagement, and brand awareness, and growth to look like the next Google. Time will tell," Stalder added.