Yesterday, I watched an interview Om Malik did with Josh Williams, the CEO of Gowalla. It was an odd interview that gave me a serious DotComBust flashback. My comment on Om’s blog was: “Small interactive design firm stumbles into a ‘hot’ space with no real business model, shows up at all the cool conferences, raises venture capitol. Is it just me or is all of this feeling a bit too much like 1999?”
Foursquare, Gowalla, etc. are an evolution of the social space that is now designated location-based social networking or LBSN (Oh boy, a new acronym.) LBSN conferences are even starting to pop-up.
I am just trying to get my head around this.
So, there are multiple services all vying for a space may or may not have solid business models. Some of these, such as Gowalla, are just now tying into mobile apps which seems like the very first thing you would do.
Some are mobile at the core, seem to have a pretty substantial user base and have launched targeted ad networks, such as Brightkite.
There are other social networks that will probably jump into the fray. Yelp, etc. Also in that category are a couple of 800 lb. gorillas, Twitter and Facebook.
Then there are the really big boys. Google with Latitude, Microsoft with GeoLife.
And add in the mobile carriers; Nokia, AT&T, Verizon. (In the last 24 months, Nokia acquired Cellity, Dopplr, NAVTEQ and Plazes.)
I guess, my question is: How does Gowalla, with less than a 100,000 users and late to the mobile space, raise 8 mil. in VC?
It ain’t the next Twitter…or is it? Just asking.
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Before any of these types of websites will catch on, users will need a scope of their own goals with respect to the site’s use. That is, people are going to have to know what they are going to get for using a site like Gowalla, or even Latitude.
You have an interesting perspective here. It just goes to show that when there is the allure of big profit, history lessons (even recent history…) are either forgotten or ignored for the sake of the gamble.
I look forwarding to watching this play out over the next few years.
Rachel,
Thanks for the comment. I agree that where money is involved, memories get short. I do think social technologies will continue to evolve and maybe a Gowalla can succeed,I would think that it would take a solid member base to justify 8 mil. and I am not sure they are in that position.
Great post, Ken. If you really want a flashback to the dot com obliteration, you should check out Facebook’s office space as well as Twitter’s office space. Some of these companies need less skateboards in the office and more lessons in building sustainable products.