One of the biggest problems in the tech space is the common idea that, if somebody pioneered a space, that space is pretty much closed to future players. We all know this is flat out wrong. In the tech space, even though you’re the first, if you don’t innovate to a high enough level, you will get superseded. You have to remember, Facebook wasn’t the first social networking websites. There were other social network pioneers like College club, My Space, Friendster. But it is Facebook that truly delivered on the social network business content and promotions model.
Everybody should keep this in mind when digesting the news that private social network provider, Path, just raised a third round funding of 25 million dollars from Indonesian investors. Just like innovations in blogging platforms help lift Tumblr to great heights before being bought out by Yahoo, people should know that there are still a lot of open opportunities for new companies in the social networking business promotions and content model. What makes Path distinctive from many of the other social network websites platforms and software that is there? Very simple. Path focuses on true privacy. If you’ve been a reader of this blog, you know that this is Facebook’s Achilles heel. Path tries to give users of this social network maximum peace of mind by truly keeping their social network private. It limits, for example, the number of friend networks to 50 friends.
It remains to be seen whether Path will actually become profitable or truly offer a compelling product that can generate substantial revenues without being eclipsed by Facebook. Still, it does have a great marketing spin. People are suspicious of Facebook. In many cases, Facebook is just too open. Maybe Path and its focus on privacy can offer solid value that can translate to healthy revenues in the future.