Financing for Social Network Websites

Financing for social network websites is a challenge.  You have a chicken and egg problem.  You need money to grow and get traction.  But in order to get investors, you need to show that your social network membership is increasing exponentially.  And that these members want to buy services or products in the niche.

Financing a social network site

 

Financing a Social Network Site

In a series of blog posts, we consider alternative sources of startup financing for social network websites.

How to Start a Social Networking Website Part 8: Startup Financing
Find out what the pros say about appropriate  sources for startup financing for a social networking website, from among these alternatives: banks, angel investors, venture capital and friends and family.

Financing for Social Network Startups
Describes special venture capital fund called the Social Fund, for social startups.

The Niche Social Networking Website Piazza Raises 1.5 Million Dollars
Why can a site like this get funding with no revenue?  I think the answer is fast adoption (330 colleges in 2 years) and deep engagement (users spending 2-3 hours on the site per day.)

Mashable Startup Links on Financing

The tech website Mashable has a section on Startups , many of which discuss incubators, venture capital funding or microlending.  One such relevant post is 5 Ways to Raise Funds for Your Startup.