Social Networks 3.0

VentureBlog: Social Networks 3.0 Social networks, the next big thing. From a venture capitalists perspective, David Hornik says: “I believe that we are now in Social Networks 3.0. After a fair bit of excitement and energy around pure play social networks, it became clear that the building and management of a social network was not, in and of itself, a compelling consumer experience. In a nod back to the earliest instantiations of social networking, entrepreneurs have come to realize that social networks are enablers of other compelling consumer experiences. Thus, social networks are becoming an important ingredient of all sorts of consumer experiences. Social networks inform the conversations that take place among friends on LiveJournal. Social networks enable the discovery of new music on MySpace. Social networks enhance the multi-player gaming experience at Xfire. Social networks now empower recruiting on LinkedIn. And dozens of new social networks are emerging to enable specific, valuable consumer experiences that are enhanced by the underpinnings of the network.”

Building social networks will be increasingly valuable and will have all kinds of implications for news (think Digg) and search (think the Flickrization of Yahoo!). Those companies that succesfully build these social networks will be highly sought after businesses and will represent powerful new tools for market researchers, news editors, reporters, search engines, comparison shopping sites, bloggers and anyone else looking to tap into the wisdom of the crowd. Paramount to the success of these communities will be the integrity of their members and the ability to keep out noise (i.e. spam, phishing and other unwanted distractions).

Thanks, Om!

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