VCs and the new Facebook economy

To get an idea of how much buzz the topic of an economy around Facebook has, I visited Technorati and typed in a few key words related to other hot topics for comparison. Here are the numbers that came back:

  • Facebook: 386,384 blog posts
  • Hillary: 256,924
  • Solar: 222,543
  • Obama: 216,666
  • Ethanol: 41,380
  • Biofuel: 2,028

Facebook has more blog posts than the two most blogged about presidential candidates, and more than several key words relating to what many investors consider to be the next big economic boom – cleantech. Why is that?

A major factor is simply because the Facebook application race is open to a much larger group of people. In other words, while environmentally responsible energy and technology will be a huge economic opportunity for many, it takes a lot more money to get started in the cleantech industry. Yet, while a shoe-string budget may get you inside Facebook, it may not be enough to make your application successful, especially if your success metrics are based on monetization. Five months and nearly 5,000 applications later, it is likely that we’ll see a lot more applications fail to experience the growth that many applications have experienced by virtue of just being early in the game.

So if you are an application developer, how do you attract funding with so much competition? We are very lucky to have Angela Strange, from Bay Partners, joining us at App-Camp to help answer that question. Angela is a Senior Associate Partner, and leads Bay Partner’s AppFactory, a fund set up specifically for Facebook applications that has a fast-track approach to awarding funding.

Angela Strange, Senior Associate Partner, Bay Partners

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