Facebook VCs Have to Invest Somewhere, Right?

Yesterday, Eric Eldon broke the news about the Courses application developers receiving $500,000 in funding. The funding round was lead by Peter Thiel’s Founders Fund. Peter Thiel was also the primary investor in Buddy Media during their $1.5 million round. There haven’t been many announcements about Facebook applications raising capital though over the past few months. It appears that the top applications that weren’t already VC funded have since received funding, have partnered with larger media partners or have chosen to stick it out.

Facebook applications are currently one of the most risky investments that VCs can make and that’s why we are seeing such a small percentage of venture capital portfolios being invested in this space.

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