Facebooks $10m 'fund'

You may have read reports of Facebooks US$10m fund.

After much praising of the "fbfund"'s less onerous conditions (no equity required) as compared with traditional vernture capital, we find hidden away near the end of the article the following nugget:

Accel Partners and The Founders Fund will have the right of first refusal to provide future venture capital financing to companies.

So they do want equity after all (via their right to provide venture capital financing), but only on the successful companies. I wonder if the tax implications are better this way.