#1: I don't see anything that is truly unique, or that presents a barrier to entry for competitors in Facebook. I've often called it the GeoCities of Gen Y. S

#1: I don't see anything that is truly unique, or that presents a barrier to entry for competitors in Facebook. I've often called it the GeoCities of Gen Y. So there is no valuation that I'd likely invest in FB. #2: The biggest reason here is likely because I am thinking about it in terms of MY money. Most VCs are working with somebody elses money, and I think this can affect a persons judgement and cause them to take chances they wouldn't ordinarily take. I would invest $0 of my money in FaceBook. But, I'd gladly invest $10M of YOUR money. And I could talk it up in a manner that made you think I was doing you a great favor. If I turn out to be right, then I look like a visionary. If I turn out to be wrong then we were both fooled by them, or snookered by the economy, etc. More information does not always enable you to make better decisions...