Insight: On Facebook, app makers face a treacherous path

By Gerry Shih SAN FRANCISCO (Reuters) - Last spring, the future for Viddy, a video-sharing Facebook app, seemed as sunny as Southern California's skies. Based a block away from Venice Beach, the 30-person startup impressed prospective investors with skyrocketing user growth figures and won funding from them at a $370 million valuation. The tech press hailed it as the "Instagram for video," potentially ripe for a billion-dollar-plus buyout. Justin Bieber wanted to invest — and the pop star eventually did just that. ...

via Tech News Headlines - Yahoo! News http://news.yahoo.com/insight-facebook-app-makers-face-treacherous-path-050915851--sector.html