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We all have heard of Mark Zuckerberg as a founder of Facebook. But have you heard of the unfamiliar name rooted in the founder’s section, Eduardo Saverin? What made Eduardo Saverin being recognized as a co-founder? It took a legal settlement for Eduardo to be recognized!
About Eduardo Saverin:
The son of a Brazilian immigrant parent in Miami, Saverin was born in São Paulo but grew up wealthy in southern Florida, attending a boarding school before moving to Harvard, where he made good connections with Zuckerberg as a young man studying economics.
In 2004, Saverin cofounded Facebook with his Harvard classmate- Mark Zuckerberg. Now as a budding capitalist, he still finds much of his wealth in his small but valuable stake on Facebook.
In 2016, he launched and introduced venture fund B Capital, with BCG and Bain Capital veteran Raj Ganguly. The fund has raised $ 766 million to date and has invested in past technology firms in Asia, Europe, and the U.S.
A native of Brazil, Saverin has lived in Singapore since losing his citizenship in the U.S in 2012 before Facebook IPO.
You might be thinking that why Eduardo Saverin was not in the public picture? Also, Why is that the pioneers behind social media giant Facebook, are relatively unknown as compared to Mark.
Well, hearing that a lawsuit provided recognition to Eduardo prompts a question in my mind that this is the only way to handle the malicious critic?
Let us have a look at what happened between Mark and Saverin and what went down with Saverin.
The Facebook Connection:
In 2003, Mark approached Eduardo Saverin to discuss the idea of working with Facebook. Mark provided a 30% discount by refunding the $ 15,000 required for the servers to use the site. When Facebook became operational in 2004, Mark and another Co-Founder moved to Silicon Valley while Eduardo set off for New York to study for a job. Mark did not have the essentials of the business that Eduardo had. So he gave Eduardo the job of raising money for his business.
Mark thought Eduardo Saverin had not shared a long-term view of Facebook. Eduardo put forward the internship, was late in making decisions and signing papers. So, when Sean Parker came knocking on Mark’s door, Mark ushered him inside. Sean soon received a $ 500,000 donation from PayPal founder Peter Thiel.
Instead of a fair purge, Mark found a way around the edge of Eduardo’s claim and ownership in the company. He built a new company that bought Facebook. This slightly lowered Eduardo’s pole/stake. Zuckerberg then released 9 million shares in the new company and distributed it to everyone except Eduardo whose stake dropped from 30% to less than 5%.
Mark Zuckerberg also got Eduardo to sign a shareholders’ agreement. Eduardo was given shares in the new company, but his voting rights were revoked by Zuckerberg. If Eduardo had managed to hold on to his 30%, he would have cost $ 34 billion now.
Now, after this much had happened, what do you think? Why Eduardo Saverin sued Zuckerberg after being sued by Facebook? Besides, how much did he get in the settlement?
The exit of Eduardo Saverin:
Saverin eventually sued Facebook for violating an honest job and also the fiduciary duty. The lawsuit came to an end with Eduardo receiving a 5% stake in the company and being honoured as the Facebook Co-Founder. He was also required to sign a non-disclosure agreement as part of the agreement and settlement.
Since its resolution, Eduardo Saverin has sold more than half of his stake on Facebook and has invested in a few startups with great power.
After Facebook Life:
In 2012, he resigned or I should say that he renounced his United States citizenship and moved to Singapore. The move was designed to avoid taxes. However, he denied the allegations and said he was interested in working and living in Singapore. From then on, Eduardo kept busy. He has made numerous investments including Orami, Red-Mart, and FlightCar as mentioned above.
In 2015, he founded his business capital, B – Capital, which was able to raise $ 350 million in its first round. The investment is focused on the implementation of technology that takes care of health care, financial services, and insurance. The firm has made 20 bucks so far as Antler, MSwipe, and Ninja Van are the most notable
Eduardo Saverin currently costs $ 10.3 billion, and owns 53 million Facebook shares!
The End Note:
We are glad that if we were successful in creating awareness for the readers. This inspirational potion is just to make you remind of the fact that not only Saverin had been unrecognized despite having played a prominent role in uplifting Facebook who eventually fought for his recognition but you all are capable of recognition and the only provided thing for it is ‘self-appreciation.
Start appreciating yourself and respect the team spirit, unlike Mark Zuckerberg who disrespected Saverin. Always remember that,
You should stop when your efforts are expected rather than being appreciated and recognized!