Tuesday, July 10th, 2007

Bay Partners Announces Facebook AppFactory Seed Program

Category: Ajax, Announcements, Social Networks

Salil Deshpande has announced a bold move with the Facebook AppFactory. Bay Partners is announcing The AppFactory, a seed program to fund Facebook application developers via a fast-track process.

This program shows that Bay Partners believes that Facebook, in essence, has become the Social Operating System. And historically the creation of an operating system, or platform, has always led to the creation of an applications market atop that platform. “We think that the Facebook platform is broad enough, technically sound, appealing to businesses, and such a culture-fit for today’s internet ecosystem that it will become a significant and meaningful social operating system platform, if not the dominant one.”

We asked Salil, Partner at Bay Partners, a few questions on the news:

What are you investing?

We will award between $25,000 – $250,000 to between 10 and 50 entrepreneurs with a flexible, fast-track process. Because early investments of this size are really bets on people and concepts, Bay Partners looks at the AppFactory as a fantastic relationship starter with tomorrow’s innovators. Because the investments are small, when compared to traditional venture investments, and because the amount of due-diligence that be done on kernels of ideas is often also small, Bay expects entrepreneurs to invest no more than a few hours into the process, and expects to make go no-go decisions in days rather than weeks.

What does this mean for Ajax developers?

With announcements such as this, and Google Gadget Ventures, firms are putting money where their mouth is. We are seeing the birth of web platforms, and these platforms become distribution mechanisms for entrepreneurs. The technical bar is lowered, as it is easy to create applications on top of Facebook, Google Gadgets, and the other platforms out there.

Currently we see simple, almost trivial apps. As time goes on those apps will become more and more sophisticated, and will be a blend of on-platform and off-platform experiences, and will likely involve a lot of Ajax.

What types of applications do you foresee coming from this platform?

We definitely see the open Facebook platform resulting in real, valuable applications. We believe that the Facebook apps of the future will be deep and sophisticated and will strike the right balance between adding value to the Facebook fabric, and having value independent of Facebook. For example, a shipping app that lets Facebook friends transparently use a service such as LicketyShip to physically lend and borrow books listed as favorites from each other, can monetize by charging for the shipping. A stock picking app that lets friends view each others’ stock portfolios could monetize at the point where friends want their own portfolio to reflect a friend’s picks.

And can people really make money from Facebook applications?

Yes! Incorrect conclusions are being drawn from the unmonetizability of some apps that have spread fast on Facebook to date. Some apps are like jokes that get forwarded around by email – and will always be unmonetizable. But meaningful apps will be monetizable just as meaningful web 2.0 websites are monetizable. We are interested in backing entrepreneurs that will be imaginative about what types of applications can be built on Facebook’s Social OS.

Facebook’s user interface is critiqued as being sterile – not very rich , flexible, customizable, or personal. Will this change things?

First off, the Facebook apps we are looking to fund are not necessarily those that focus only on jazzing up the user experience. Having said that, yes, we definitely think that the open API will allow a whole new level and set of rich experiences to be available on Facebook. Now that Facebook has put itself in the platform business, the application developer community is bound to create rich user experiences, whether they are enhancements to Facebook’s current user experience, or alternative user experiences.

What will the other social networks’ APIs look like?

Here’s some bold speculation. By the time other social networks open up their platforms, Facebook may have a sizeable lead in developer mindshare, and in the number of applications on their platform. The other social networks may struggle if they introduce APIs that are not compatible with Facebook’s. We think that the other networks should consider making their API compatible, if not identical, to the FaceBook API. This will allow one-click deploy of apps written for the FaceBook platform, onto the other platforms, thus mitigating Facebook’s lead. And we think they will seriously consider this.

This once again shows what a great time it is for Ajax developers. Everyone wants us!

Posted by Dion Almaer at 12:38 am

3.9 rating from 32 votes


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Hooray! Now we can all land a hand to Big Brother to increase the control over the population. Such a big day will be when everyone will organize their lifes using online tools sponsored by 3 letter agencies. ;)

Comment by Adrian — July 10, 2007

that guy is full of himself. if you want your app to be compatible, you make your app part of the web – you use URIs everywhere, REST principles – “We think that the other networks should consider making their API compatible, if not identical, to the FaceBook API.” is laughable, and just proves how facebook isnt really a web app, its a silo app which used web since it was the most pervasively installed GUI runtime..

Comment by carmen — July 10, 2007

Can there be any other emerging technology wgich web 2.0 companies like Facebook may be using in the future apart from Ajax http://www.fomaxtech.com/

Comment by Saba — July 10, 2007

Seriously. This is great news. Your last point is a great one, Dion — developing with web standards is a set of skills in high high demand, no question. Facebook has a lot of untapped potential with their exposed api and their WHOPPING 24,000,000 users! …I call it the “viral Petri Dish”

Comment by Mark Holton — July 10, 2007

Facebook does have lots of Good APIs coming along, and I think also should delve into development of APIs for it.

Comment by Arpit Jain — July 11, 2007

These guys are trying to use their site to grow their home site, too…http://apps.facebook.com/thenewsroom

Comment by Ian from www.thenewsroom.com — August 4, 2007

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look at our fomaxtech profile to know more on the web 3.0 services and business lines.
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Comment by fomaxtech123 — July 2, 2009

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