Earlier this month TBI research posted an article that based on my entrepreneurial experience in the social networking space peaked my interest. To quote TBI:
According to Peachtree Media Advisors, M&A and capital-raising activity in the social network space all but disappeared in 2009.
The research could lead one to gather that with the monstrous explosion of both Facebook and Twitter, the promotion of a new social networking site could be too great of a risk. But then, of course, 2009 wasn’t exactly a great year for hefty investing anyway. Either way I find such a drastic drop in funding for social networking innovation interesting.
There was a time where MySpace was the social networking giant and I didn’t think it would go anywhere… until the day I canceled my account. Time will tell if Facebook and Twitter will continue to evolve and grow and change as the landscape changes. But for now, these statistics are just interesting… that’s it.
What are your thoughts on this subject? Do you think there is still space for new social networking sites? What gaps are there still in social networking that need to be filled?
