Back to the future: In 2003, venture capitalists poured $100 million into the “social networking” space, according to this story.
“The feature set and product set of sites like Friendster is not hype – it’s a reality,” says Andrew Anker, a partner with August Capital in Menlo Park, Calif., and an investor in Tickle. “Hype is the $53 million [post-money] valuation on a company with no revenue. The classic venture bubble has now hit social networking. The pure play social networking companies are increasingly struggling to build a revenue model.”