The Global Financial Crisis is having an impact on all areas of the economy, especially those in early stages of development like the social media sector. Pownce, I Want Sandy and Stikkit have all announced their demise today, and other businesses are sure to follow.
The Stubborn Mule has summed up the situation well:
The rate of innovation online of late has been extraordinary, but the result is a proliferation of services that is not sustainable. With the Global Financial Crisis progressing outside the financial sector to the broader economy, venture capitalists will be tightening their purse-strings and this will inevitably lead to a period of consolidation in the online landscape.
Read The Mule’s full post here.
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Filed under: Business Models, Social Media | Tagged: GFC, Global Financial Crisis, I Want Sandy, online economy, Pownce, Stikkit, Venture Capital |
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