Even though social networking and widgets are pervasive -- and useful -- the ultimate business model is a bit fuzzy. But, for some VCs, there is still hope.
Look at KickApps, which has a full-platform to build cool widgets. This week, the company announced a Series C round of $14 million. The investors include North Atlantic Capital, Softbank, Spark Capital, and Prism Ventures.
The deal is definitely gutsy. After all, online advertising looks particularly vulnerable -- and even top social networking sites, such as Facebook, are falling below expectations.
However, VCs are supposed to look at the long haul. So, with the money, KickApps can continue to forge its strength in the marketplace, with arrangements with more than 48,000 websites across a myriad of industries. Some of the customers include Budget Travel, New York Knicks, and Guinness World Records.
The company's platform is powerful -- there are strong video capabilities -- but also relatively easy to use. No doubt, this is usually a good combination for a new technology.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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