Tuesday, December 15, 2009, 1:05AM ET - U.S. Markets open in 8 hours and 25 minutes.

Web 2.0: Why Only a Few Will Remain Standing

Posted Jun 19, 2008 05:20pm EDT by Sarah Lacy in Investing, Internet, Venture Capital, M and A, IPOs

As the dot com bubble was crashing Reid Hoffman was an executive at PayPal, and he was one of the few people in Silicon Valley having a good year. Once PayPal sold to eBay in 2002, Hoffman quit and had some free time on his hands. He was torn between investing in smart new ideas and starting his own, so he decided to do both. The company he co-founded in 2003 was LinkedIn, one of the very earliest social networking companies and still one of the largest today. Companies he invested in include Digg, Facebook, Flickr, Last.fm and Six Apart to name a few. His secret? Believing in the Web again before everyone else did.

As one of the most central figures in the Web 2.0 movement, I asked Hoffman his thoughts on the future.

10 Comments

James
James - Thursday June 19, 2008 05:38PM EDT

What could stop Web 2.0 is when advertisers come to the realization that nobody actually clicks on the advertisements on these social networking sites because people are too busy networking to click an ad. How does a social networking company make money without advertising? They charge a fee to use it that's how, then what will happen?

JARAA
JARAA - Thursday June 19, 2008 07:39PM EDT

IMHO i think the trick to social gaming sites (i.e. WOW) is "subliminal" advertising: the kind you cant see; only subconciously. like when your in orgimarr; theres subliminal "coke" and MSFT messages that are not incorporated into the environment ina n invasive way. the problem is the measurement of the progress, or profitability of of these messages

Raymond
Raymond - Thursday June 19, 2008 09:32PM EDT

He is right about mobile that asia and europe is light years ahead of us in terms of actually using it for social and business activities. It could be huge...

__A_YAHOO_USER__
__A_YAHOO_USER__ - Friday June 20, 2008 12:36AM EDT

Am sick of this Web 2.0 bull crap, dam is like in every story they have to throw in this web 2.0, even Sara's book is about this crap, can we please move on in life, please???

Mumtaz
Mumtaz - Friday June 20, 2008 03:35AM EDT

bnvbhghghwewewwerwerwrsewrerrerewerwewerwerdssfwe

Brian
Brian - Friday June 20, 2008 08:05AM EDT

Well just like so may other sites during the bubble no one will pay for social networking. I am a linkedIn member but as an individual I will never pay their high membership fees. It will only be paid by those who think they may benefit from it. LinkedIn seems to be a primary site for recruiters but I have yet to find a job from this site and I am not sure the recruiters are benefiting from it. Many of the members have formed their own private network and use it to jumpstart their brand. Google, Amazon, Ebay and Priceline are the models for success. I have not seen documented success of the B2B sites either.

Bill
Bill - Friday June 20, 2008 08:18AM EDT

I believe ad insertions in podcasting has some merit. You watch your favorite download and there is a extremly brief ad in there. It catches your eye but is there only for a small time. You can't ignore it as you want to watch your program.

MarkB
MarkB - Friday June 20, 2008 09:01AM EDT

If you're a lacrosse fan, check out my Web 2.0 site at www.laxspot.com. - Powered by the Lacrosse Community

JK
JK - Friday June 20, 2008 09:23AM EDT

Web is dying. Get outside and smell the roses.

LisaSimpkins
LisaSimpkins - Friday June 20, 2008 11:45AM EDT

A charge for using these web 2.0 sites have been implimented and in the long run all will have a fee to use them.I have created my large list by using these sites while free so get busy and build that list.Of course we have web 3.0 coming in and that will create the same problem in years to come.

Yahoo! reserves the right to refuse, or remove any comment that does not comply with the Yahoo! Terms of Service. The submission of spam, hateful, or obscene messages may result in the termination of your Yahoo! ID.
About Tech Ticker - Send FeedbackDisclaimer. Copyright © 2007 Yahoo! Inc. All rights reserved.
Copyright/IP Policy - Terms of Service - Privacy Policy - Help
Quotes delayed, except where indicated otherwise. Delay times are 15 mins for NASDAQ, NYSE and Amex. See also delay times for other exchanges.

Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page. Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quotes are delayed at least 15 minutes for NASDAQ, NYSE and Amex. See also delay times for other exchanges. Real-Time continuous streaming quotes are available through our premium service. You may turn streaming quotes on or off. Fundamental company data provided by Capital IQ. Financials data provided by Edgar Online. Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI). International historical chart data, daily updates, fund summary, fund performance, dividend data and Morningstar Index data provided by Morningstar, Inc. Analyst estimates data provided by Thomson Financial Network. All data provided by Thomson Financial Network is based solely upon research information provided by third party analysts. Yahoo! has not reviewed, and in no way endorses the validity of such data. Yahoo! and ThomsonFN shall not be liable for any actions taken in reliance thereon. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.