MARCH 24, 2011 • Yobongo Inc. is a new studio based in San Francisco that just released an iPhone app by the same name. The app enables users to chat randomly with others in the same geographic area that have Yobongo installed. Following the launch, Yobongo raised $1.35 million from True Ventures, Freestyle Capital, and other investors including Lotus Development Corp. founder Mitch Kapor.
Impact: We suspect the investment dollars flowing into Yobongo are driven by an desire to discover and ride the next Twitter to fame and fortune. Perhaps Yobongo will be that next social media sensation, although we have severe reservations about an app that encourages 12 year-olds to engage in random chats with potential predators in the same city. All of which confirms the suspicion that much investment today is like a trip to the tables in Vegas. It’s not about searching out long-term practical fundamentals, but riding the hottest dice until they crap out.