Why Facebook is foundering

The great hope of the Valley, the startup everyone thought was the next Google, the company whose IPO might restart the stock-market gold rush for everyone, is not well. Why? Look to its founder. Mark Zuckerberg is mismanaging his creation's transition to greatness. In Facebook's own parlance, the company's plight is "complicated." It will take in $300 million to $350 million in revenue this year, thanks in part to a lucrative ad deal with Microsoft. But its $15 billion valuation is premised on a far brighter future — a future that may never materialize. The biggest symptom of Facebook's ailment is the flight of technical talent. In the Valley, success attracts smart people, who attract other smart people. Yes, they're after money, too, but having brilliant coworkers counts for a lot. These great minds bond and form, yes, a sort of social network of their own. When they leave, the network frays, weakening the company's ability to attract new talent. More »

Yet another hoodie-wearing Harvard kid drops out of Facebook

Following fellow early Facebook employees CTO Adam D'Angelo and VP Matt Cohler, Facebook's head of data and analytics Jeff Hammerbacher will leave the company. Cohler left for a prestigious partnership at VC firm Benchmark Capital. D'Angelo left — or was encouraged to leave — in order to find a project more suited to his interests. VentureBeat, which broke the Hammerbacher news, doesn't know why he's going. One thing all the departures have in common: They've come after COO Sheryl Sandberg's arrival. "Scaling up is hard and it's not as much fun not to know everyone you work with," she told employees when she joined the company. We're wondering if it won't be harder for Facebook founder and CEO Mark Zuckerberg than he might think — what will he do without all his friends? More »

Data analysis indicates you should go out tonight

Want to hear from one of the geniuses who worked on pricing subprime mortgages? Facebook's Jeff Hammerbacher speaks at Yahoo Brickhouse today at noon. While you're there, ask Brickhouse manager Salim Ismail about his trouble with the taxman. If that doesn't exhaust you, there are six, count them, six Macworld parties to choose from tonight — plus Pownce's pre-launch event, if you want to hoist a PBR with Kevin Rose. More »

Facebook's data guru worked on mortgage mess

Jeff Hammerbacher, a research scientist at Facebook, is giving a presentation at Yahoo today about large-scale data analysis. The Harvard grad's prior experience before coming to Facebook? Developing price models for mortgage-backed securities at Bear Stearns — the same kind of securities that led Bear to write off $1.9 billion in December. Does this explain why Facebook is sending him to give a talk at a competitor? Take note, Yahoos. (Photo by jakob)

Lotus Vodka offers release from the tech scene

A tip for those of you trying to mingle with successful entrepreneurs and VCs: Attend more than just the standard tech meet-and-greets. The people who are really in a position to help you with your startup never go to them anyway. So where to go instead? Check out events like last night's Lotus Vodka release party at SoMa's Euro-inspired restaurant Supperclub. You'll find founders and the moneymen behind them willing to chat and unable to prejudge you based on your nametag. Refreshing. Bonus: The nontech people who attend these things make for a far better-looking crowd. Far better-looking. The full report, and a gallery of photos, follows. More »