Imagine that you receive a call from a friend in the usa who is

Imagine that you receive a call from a friend in the USA who is seeking VC funding for a new business called

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Facegraph. Facegraph sees itself as the “next big thing” in social networking that has the potential to

replace Facebook as the market leader. Its business model is based on the idea that people are fed up with

the increasing amounts of advertising on Facebook, and will switch over to Facegraph if they can have an

ad-free experience. Although Facegraph will initially be offered to users for free, the company believes that

over time it can introduce subscription fees of $1 per user per year. Based on the topics discussed in the

lectures, do you think Facegraph would make a good VC investment? Why or why not? [20 points]

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