With the success of MySpace and Facebook, venture capitalists are ramping up investments in the social networking space. One of the latest deals is a $20 million round for hi5. The lead investor is Mohr Davidow Ventures.Hi5 has more than 60 million registered users and has a strong presence in global markets, including Latin America and parts of Eastern Europe.
To get some perspective on things, I interviewed Robb Hecht, who is an expert on social networking and operates IMC Strategy Lab. According to him: "If you were an investor and wanted to get in the game on the most international social network, you'd currently invest in Hi5 (not MySpace or Facebook).
"Hi5's not much of a hit in the U.S., but with a fourth the number of users of MySpace and almost twice as many users as Facebook, the site is both gaining deserved attention and funding.
