STEP 2.0: PROFITS

WEB STARTUPS SCRAMBLE TO MAKE MONEY By BRIAN GARRITY and HOLLY M. SANDERS It's a dilemma that even a whiz kid like Facebook's Mark Zuckerberg might not be able to figure out: How can a Web site make money as online display advertising growth slows? Buzzy Internet companies like Facebook are scrambling to find fresh ways to generate revenue amid signs that online advertising - the lifeblood of so-called Web 2.0 companies - could contract with the swooning economy. Adding to the sense of urgency are venture capitalists and strategic investors who are tightening the purse strings as they become less willing to write blank checks to bankroll startups. Indeed, venture capital firms like Sequoia Capital, which provided seed money to YouTube and humor Web site Funnyordie.com, are telling the companies in which they invest that the... [read full story]