So you sit there and think social media has gotten pretty stale: same old tweets, garbage posts on Facebook, and we all know Digg has its own problems. You have a great idea but no cash to invest and none of your favorite uncles wants to invest $10,000 to get your idea off the ground. Have no fear as some Titans of Tech have put together a $250 million social media start-up fund.
This special fund set up by Venture capital group Kleiner Perkins Caufield & Byers, the same firm that initially funded Google, has aimed startups specifically developing applications and services with a social media slant. Other investors in the aptly named “sFund” include Facebook, Amazon, Zynga, Comcast and Liberty Media.
Working capital will not be the only perk of the fund as participating companies will also offer no cost access to its services.
Amazon will provide their Amazon Web Services Getting-Started Support for one year. Facebook is offering access to platform teams, beta APIs and Facebook Credits. Zynga will host sessions with fund companies that teach best practices in management and technical development.
This isn’t the first time KPCB has ventured into the social media realm: they also funded Cafebots, Flipboard and the much maligned Lockerz. So all you Lockerz members wondering where they got their cash for all those prizes that never seemed to be plentiful enough, now you know.
It seems as though investment in social media will step up in the coming years as companies realize the potential beyond the simple entertainment value and chit chat between individuals. Social media, if implemented correctly is a high profile, free form of advertising and with today’s cutbacks it will prove to be an important part of companies marketing strategies.
How would you change twitter, Facebook or some of your other favorite social media sites?