Selling shovels to Web 2.0 gold miners

An analysis of peripheral Web start-ups.

As popular social-networking and video-sharing sites continue to gain popularity, a new class of start-ups is attempting to cash in on the bonanza.

Several companies that debuted at Demo '07 showed off slick new applications that are ready-made to take advantage of the content and audiences of successful sites like YouTube, MySpace.com, Facebook and others. Web apps like Panjea, Vuvox and Share2Me enable users to re-share media content that's already been uploaded on the Net.

Though building a company based on a single feature usually is not a wise idea, VCs are all over this stuff, shelling out venture funding despite these start-ups' lack of solid business models and sophisticated, patented technology. Analysts say that's a big mistake. For more, check out the rest of the article at CNET News.com.

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