Friendster is still alive and well ... and gets $20 million

Founded in 2002 – during the dark times of the Internet – Friendster became one of the pioneers of the social networking space. The company quickly got traction and even attracted the interest of Google (NASDAQ: GOOG). But, of course, MySpace and Facebook had ultimately beat out Friendster.

Yet, the plucky website hasn't given up. In fact, the company has announced a $20 million round of venture capital. The investors include heavyweights like IDG Ventures, Kleiner Perkins Caufield & Byers, Benchmark Capital, DAG Ventures and Founders Fund. In all, Friendster has raised $50 million.

Actually, Friendster is ranked as the 9th most trafficked site in the world, with a heavy penetration in Asia where it is the #1 social networking platform. There are about 75 million registered users.

Interestingly enough, Friendster has a broad portfolio of patents, which perhaps can be used as leverage when combating its rivals. What's more, the company has done quite well in terms of adding features and providing a good user experience.

To help keep things on the right track, Friendster has hired Richard Kimber as its CEO. He was formerly a regional managing director of South Asia for Google. Apparently, he'll be spending much of his time in Asia, trying to put together partnerships.

While social networking seems to be maturing in the U.S., there still are great opportunities in foreign markets. Furthermore, with $20 million more in the bank, Friendster can broaden its footprint and perhaps be a hot property for an acquisition.

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