MocoSpace: Social networking hits mobile

It seems inevitable that social network will soon be a very big deal on mobile devices. And here comes a new player that wants to be the leader: MocoSpace.

The company has raised $3 million in venture capital. The investors include: General Catalyst, Pilot Group, and Michael Dearing, who is a former executive from eBay Inc. (NASDAQ: EBAY).

Consider that there are roughly 76 million mobile content subscribers in the U.S. and only about 6.7% of them use social things like chat and dating applications. So why not social networking? There is certainly a lot of upside potential.

However, I'm a bit skeptical on MocoSpace (at least for now. And then there's the name: Mocos is Spanish slang for snot...didn't anyone mention that to the founders?) I'm sure we'll see many more startups hit the market, hopefully with more enticing names, and surely many with funding. Of course, the established biggies like MySpace and Facebook will in the meantime improve their offerings. Or, if they can't get much traction, they'll just use their enormous resources to buy up a competitor. In other words, we are still in the early innings on this.

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Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements.