I don't think "social media" will kill Silicon Valley. VCs are certainly interested in a quick return on investment that social media start-ups can achieve. H

I don't think "social media" will kill Silicon Valley. VCs are certainly interested in a quick return on investment that social media start-ups can achieve. However, most start-ups fail; for every lucky investor who got in early on Facebook or Zynga or Instagram, how many investors backed a different company that's had only modest returns? In general, the majority of VC money is placed in also-ran start-ups that don't generate the media attention of an outlier like Facebook. Most VCs aren't stupid. They know that not every social media company will earn 100 million in three years. Most will never earn that kind of money. However, a lot of VCs back projects they're passionate about, projects like renewable energy, cancer research, and many others. This article takes a complicated market (venture capital in SV) and makes sweeping generalizations.