Facebook VC: We’re Investing in Facebook Apps Too

For Facebook application developers, not all VCs are created equal…at least when it comes to the support they can lend your company if they also happen to, say, sit on the board of Facebook itself.

That’s the position Jim Breyer, David Sze, and Paul Madera find themselves in as they size up pitches from application developers for Accel, Greylock, and Meritech Capital, respectively. Not only do they have the inside track on spotting up and coming applications, but they also have the power to make life for an application developer considerably smoother.

As for Accel, Jim Breyer tells us that his fund is “actively evaluating important application developers” in the “video, utility, gaming, and entertainment” categories, but is not yet announcing any deals. Depending on how you look at it, that’s either great or terrible news to all the other video, gaming, and entertainment apps out there :)

However, it’s unlikely that Accel will launch a SNAP (Social Network APplication) fund like AppFactory at Bay Partners. Accel will just invest in Facebook app developers from their existing funds.

Cultivating the Facebook application economy is in nobody’s better interest than Accel, Greylock, and Meritech. Owning successful applications is twice is sweet when you own the platform too.

[tags]facebook,vc,accel,greylock,meritech[/tags]

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10 Responses to “Facebook VC: We’re Investing in Facebook Apps Too”

  1. dave mcclure says:

    hmmm… well I certainly agree these guys are smart & have the inside track with Facebook, but the discussion above feels a *little* too genuflective.

    I think what could be overlooked here is whether *Facebook* itSELF takes a more proactive role in its own platform business (whether that’s good or bad, right or wrong).

    guess it just seems a bit unlikely that Facebook’s VCs have so much power, other than being able to make privileged introductions and get their folks at the front of the line.

    i’d say the power locus still rests with the Facebook exec team. let’s hope they handle those reins well…

    - dave mcclure
    http://500hats.typepad.com/

  2. VC PR - Chum in the Water for Deal Flow « John Furrier says:

    [...] PR – Chum in the Water for Deal Flow When I saw this post from Facebook insider I said to myself… hey great PR for Accel and Jim Bryer and Greylock.  Hey ride that Facebook [...]

  3. Insider Chatter by Donna Bogatin » Web 2.0 ‘Buzz Crap’: How Startup Weekend Failed to Deliver says:

    [...] What’s the best way to Web 2.0 start-up glory these days? Build a Facebook App, of course! [...]

  4. Mark Evans - The Facebook Eco-System says:

    [...] more than a social networking “fad” when major venture capitalists start talking about investing in Facebook Apps. Personally, I find the FB Apps space confusing. There’s just much noise and no [...]

  5. The Social Publishing Blog » Facebook VC: We’re Investing in Facebook Apps Too | Social Publishing says:

    [...] read more | digg story [...]

  6. Texas Startup Blog: Web 2.0 and Social Media by Alexander Muse » Blog Archive » Facebook Conflict of Interests says:

    [...] within the fast growing social network.  The initial reaction from the blogosphere is positive suggesting, Cultivating the Facebook application economy is in nobody’s better interest than [...]

  7. How To Facebook » Blog Archive » Facebook Investors: We want Facebook startups too! says:

    [...] Inside Facebook reports Greylock, Accel, and Meritech – investors in Facebook – are also interested in funding new Facebook-related opportunties. [...]

  8. Neomeme » The Facebook Juggernaut…bitch! says:

    [...] Scoble are transitioning to Facebook, because it’s as cool as iPhone. A cottage industry, complete with eager VCs has sprung up around Facebook Applications, and startups rise and fall on Facebook apps [...]

  9. MMH says:

    Invest in Facebook NEVER!!!

    These idiots don’t even post a customer service phone number. The site is hackable and has zero security. Facebook is a joke.

    Facebook user’s identities on Facebook are being hacked by the thousands, porn pictures replacing legitimate pictures, X rated profile information replacing legitimate information and so on and so on….

    Lives are being ruined.

    We have a 20 year old IT Consulting firm and we see Facebook Identity Theft almost daily. We are associated with a parent company who invests millions in the market… Facebook and it’s partners will never see a penny from them.

    MMH – Executive Vice-President Information Systems
    Florida

  10. Facebook is a fad and already sucks. « Abhishaken says:

    [...] lots of my friends. So when I see so many more people joining Facebook and hear about VCs excited about funding Facebook apps, I’m truly surprised. Every time I login, I feel overwhelmed with [...]

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