So as for the "bubbles" in valuations related to respective distribution platforms, you're spot on (I think a huge part of social gaming's explosive growth and

So as for the "bubbles" in valuations related to respective distribution platforms, you're spot on (I think a huge part of social gaming's explosive growth and valuation growth was a function of the Facebook platform, not of its own intrinsic value). I also agree that the "social bubble" is deflating because the gold rush of everyone-being-connected-as-a-free-marketing-channel is largely winding down. Chris Dixon's post can reflect that new reality, but I would still be equally skeptical of a 10m user service with no revenue. (Of course, I'm not a VC.) Where I disagree is in your last paragraph. Yes, I think a focus on revenues can be a bad idea for some businesses. But I think exploring or attempting revenue is a good idea for every business. If the numbers look bad, don't use them, but you need to try. Even if you are only earning $10,000 per month, that's starting from $0, so there will be a growth rate attached. This is a really good number to show VCs right now. Also, you can make projections of revenue growth with the assumption of your continued user base growth, and basically double-dip into your user growth numbers that way. I still think this will be a better way to fundraise in the next 3 years than ignoring revenue completely.