Financial crisis impacts online expansion

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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