] HipMojo.com » Why Not Just Flush Your Money Down the Toilet, Pal?

Why Not Just Flush Your Money Down the Toilet, Pal?

Last week I asked if Web 2.0 was becoming a farce and today there’s a mighty strong argument to suggest that yes, indeed it is.

Bay Partners, a VC with too much money on their hands apparently, must have just gotten poked on Facebook, got excited and is now launching a “facebook-apps-only-fund”.  I can barely contain myself from laughing.

First off, let’s get this straight:

The program, called “AppFactory will be making up to fifty investments ranging from $25,000 to $250,000. Salil Deshpande says that they have preferred deal terms, but are willing to consider making equity or debt investments, and will work with co-investors as well. Basically, they want to help entrepreneurs build and monetize Facebook applications with a minimum of hassle.”

Then, in explaining the rationale on TechCrunch’s comments section, Deshpande says:

We think that incorrect conclusions are being drawn from the unmonetizability of some apps that have spread fast on Facebook to date. Some of those apps will always be unmonetizable. But meaningful apps will be monetizable just as meaningful web 2.0 websites are monetizable.

Hmm… unmonetizability, not a word.  In fact, not even a single result pops up.  Which might be a sign of things to come for this portfolio.

Madness.  Where are the thinkers questioning this?  Facebook is great, but people, why not encourage entrepreneurs to build something tangible?  Why even bother wasting my breath… 

Related:

- Facebook 100M users, a matter of when, not if.
- Facebook OS: Be careful what you ask for.
- Facebook: IPO vs. M&A.
- Facebook’s 2008 to do list: File for an IPO.
- Should MSFT Turn its Attention to Facebook?
- Peter Thiel: Facebook is Worth $8B.
- Murdoch: “MySpace worth $6B”, if so, then break up FIM!
- Facebook to be worth $2.35B by 2010.

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Posted By: Ashkan Karbasfrooshan | Jul 10th

3 Responses to “Why Not Just Flush Your Money Down the Toilet, Pal?”

  1. Facebook app fund not such a bad idea » mathewingram.com/work Says:
    July 10th, 2007 at 10:52 am

    […] similarly skeptical — Ashkan Karbasfrooshan of HipMojo, for example, can barely contain his derision for the idea. And the biggest criticism centers around whether Facebook apps are monetizable at all, something […]

  2. HipMojo.com » Today’s Twitter Economy Yesteryear’s Facebook Economy Says:
    March 30th, 2009 at 7:08 pm

    […] it just me or did we see a lot of Facebook investing activity last year when Facebook got its nosebleed $15B […]

  3. HipMojo.com » Facebook Funds: How Are They Doing Now? Says:
    August 19th, 2009 at 8:57 am

    […] me, what I wrote about Facebook-oriented funds when they launched, I believe the title was “Why not flush money down the toilet, pal?“.  Was I being too […]

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