biz-blogger.net

Facebook might be riding high at the moment in the upper echelons of the social networking world, but I’ve got one prediction that the market won’t want to hear and it might just spark the collapse of the Web2.0 bubble as far as new social startups are concerned.

The impression of facebook is a simplistic, content heavy (i.e. photos, messages) service that relies on the interaction of its members to make it valuable. It is used by professionals for networking and marketing, students for getting to know their classmates and employees within larger organisations for similar reasons.

When you look at facebook a year ago and compare it to facebook now, there is no comparison. The service of today is significantly more complex and detailed than it was prior, and there are far too many ‘features’ that provide little advantage to the user. The problem I forsee is that this will have the effect of turning facebook into a gimmick rather than an actual functional website, which will give it a very short shelf life indeed.

From there it’s only a small step before VCs lose confidence in new start up sites causing the collapse of the market.