Piazza is a niche social networking website that just raised $1.5 million in venture funding. It’s a community where college students get help with homework, says an article by Evelyn Rusli in the New York Times.
The Niche Social Networking Website’s Description
On the site, students post questions. Their peers and educators respond, on average within 14 minutes. This niche social network is now available at 330 colleges in the US.
The startup was launched by entrepreneur Pooja Nath in 2009, when was she was a student at the Stanford Graduate School of Business.
Niche Piazza’s Site Details
The average user spends 2-3 hours a day on the site.
Rusli observes that “Despite its early success, Piazza is still struggling to increase its adoption and find a road to profitability….Ms Nath says she’s in no hurry to make money on the service, which is currently free. Instead, she’s focused on building the number of users over the next year.”
Why Funding with No Revenue?
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.) Also, perhaps, because Facebook followed a similar path.
What do you think?
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