The Change Mariner

Friendster: A little cash goes a long way?

CNET News.com:

With a million members and counting, servers for six-month-old Web site Friendster are staggering under demand. Copycat competitors to the site are cropping up, and rumors of imminent subscription fees are riling members.

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[The company just closed an angel investment] amounting to just more than $1 million. The investors include former Yahoo Chief Executive Tim Koogle, who will join the Friendster board of directors; former PayPal Chief Executive Peter Thiel; and former Amazon.com and Netscape Communications executive Ram Shriram.
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Friendster, still in its test, or beta, phase, has grown to its current size by creating permission-based individual networks of friends and acquaintances through which members can trade messages, view each other's home pages and write testimonials.