the beginning of the end?

Many people are predicting a Web 2.0 crash. Right before the big dot-com crash a few years ago, I recall many web agencies getting funded with ridiculous deals. They're all closed now.

On Friday, the Wall Street Journal reports that the Boston buzz marketing firm BzzAgent is about to receive a roughly $14 million cash infusion from venture capital firms General Catalyst Partners and IDG Ventures Boston. Buzz marketing firms are "growing rapidly with [profit] margins that are very interesting," said David Carlic, a managing director at Vantage Point Venture Partners.

I'm the first to tout the benefits of non-traditional media, viral marketing, social networking, buzz media, whatever. And I'd gladly accept a $14 million cash infusion. But how long before a $14 million cash infusion pays off? Investors want to get their money back. And then some. Fast. Can they really turn BzzAgent into a $30 million company?

Let's hope they're not using it to hire Britney Spears to play at the launch party.

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