DISQUS

Ken Yarmosh: Attention VCs – Please Read Before Funding Another Social Network

  • Randy Charles Morin · 3 years ago
    Too true. The other day, my niece asked what the difference between MySpace and Spaces are. She said she was on the same one as my daughter. Ah, MSN Spaces. They don't even know which social network they are on. They only know that their friends are on it too. Further, she asked why they changed it to live.com and I said "Stupid peopel at Microsoft". She asked "Why Microsoft?" She didn't know the MS in MSN was Microsoft. Us techies are too smart for our own good. The world is a very simple place.
  • Damon Henry · 3 years ago
    Are you implying that upcoming social networks will never be able to dethrone the big boys? Or, are you simply stating that investing in a social network is just not a good idea for VC's?

    I believe that the market for niche social networks will continue to be in demand as long as the niche networks deliver services that are deeper than upload photos and talk to friends. Niche social networks have the advantage of (1) Most people you meet aren't your physical friends and (2) If done properly, they create value related to that niche. So asking your friends to join a social network related to the alaskan snow crab is a waste of time if they're not passionate about snow crabs. Niche social networks are about passion for the niche. The passionate will come.

    Who's passionate about Walmart?
  • Ken Yarmosh · 3 years ago
    Actually, a lot of people are passionate about Walmart. I hear friends all the time say, "I just love Walmart." They complain when there are no Walmarts around.

    That aside, I'd say a little of both to your first point. (1) No, I don't think that upcoming social networks will be able to dethrone the big boys (I don't see MySpace as Friendster 2.0). (2) It's not a good idea for VC's to invest in social networks.

    You don't need a niche based social network to do what you've described. That can be done with tools and features of the larger ones. And that's the same reason why the "smart" social networks I've previously written about will likely simply be assumed into the 'big boys'.