Facebook has been accused of many things: ripping off individual investors by selectively disclosing bad news to big investors before its IPO; increasing cynicism about Wall Street and damaging the IPO market; being a ridiculously pointless waste of time. Can we add “destroying innovation” to the list of charges?
On the Huffington Post, entrepreneur Steve Blank lays out the case against Facebook, arguing that its success, and that of other social-networking and social-media companies, is diverting venture capital from serious if unglamorous research with a more uncertain payoff – the sort of research that truly visionary venture capitalists should be supporting. Instead of “investing in a blockbuster cancer drug that will pay them nothing for 15 years,” Blank laments, VCs are throwing their money at the latest and possibly greatest social-media idea in hopes of scoring a quick return when it goes big.
To read the full, original article click on this link: Do Facebook and Other Social Media Stifle Innovation? | Business | TIME.com
