We had another great SquawkBox session this morning, discussing:
The issue of forced invites on Facebook applications. Some of the fastest growing Facebook applications of late have been those that require users to invite other users PRIOR to installing the application. It's provoking a small backlash on Facebook. There's now a group called "No, I will NOT invite 20 friends just to add your application!", that has compile a list of badly behaved applications, and are circulating a petition to Facebook asking that this practice be banned. On the other side of the fence are Facebook developers, who seem to be quite divided about the practice. Some defend it, arguing that bad applications will die anyway. Others argue that it's damaging the facebook ecosystem by giving all applications a bad name. From where I sit, wearing my marketers hat, it certainly looks to me as if at the very least it breaks the agreement among friends that Facebook exploits — that when i forward an invite, I'm recommending it. It was a very interesting discussion, including some novel ideas for how to handle those invites from iotum's very own Julien Raynal.
TheFunded's invitation for entrepreneurs to share term sheets. theFunded is a site that launched last March that lets entrepreneurs post stories about how they've been treated during the fund raising process. It's a giant database that covers virtually every VC, and has all kinds of feedback on the individual VCs. Needless to say, it's not that well liked by the VC community. Now they're encouraging entrepreneurs (anonymously, of course) to upload term sheets so that people can compare and contrast individual terms from each VC. We offer some advice for those entrepreneurs.
DEMO 2008. What should we be watching for?