Sometimes getting onto a hot new Web site can be tougher than making the top 10 for "American Idol," and some venture capitalists like it that way. Many of the latest crop of Web 2.0 startups are using invite-only beta launches to build out a good network of users before their official launch. Large examples include, Joost NV, which raised $45 million, and voice-over-Internet-protocol provider Ooma Inc., which raised $27 million and launched Thursday.
Venture investors say the invitation-only betas are not meant to irritate, but can help create a better site experience, and thus a better business in the long run. For example, a social-networking site that launches without any content is like a bar without hot women. Any party goers stopping by take a look around, and leave. Of course, after putting thousands or even millions into a software firm, venture capitalists likely don't have to scrounge for their invites like the rest of us. — Stacey Higginbotham
See July 19 story in TheDeal.com
See May 10 story in TheDeal.com
Tags: Joost NV, Ooma Inc., venture capital
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