Boston.com / Business / Six Degrees Co.: From Corante:
Yet another article on the start-ups hoping to capitalize on VC interest
in the social networking sector. What’s perhaps most surprising, says the
piece, is that "the West Coast's top-tier venture capitalists" are the
investors leading the charge into an unproven, speculative sector.
According to one West Coast VC: "We've created this little bubble again
with high prices and high expectations. Social networking may get killed,
not because it's not interesting, but because we ratchet up expectations
too quickly." An East Coast VC responds to the VC feeding frenzy: "They
don't worry about profits when they see subscription rates go from zero to
a few million in a few months."