The range for early stage valuations is probably broader than I have seen it since the first Internet bubble. I am aware of raises at the moment all the way from pre-moneys of below $2 million to $50 million. These are all early-stage pre-revenue companies but with launched services.

What…

Social makes the internet feel more monopolistic.  When services rely on your friends participation (or just a large populations participation) then fewer companies offering similar services can become big hits.  This isn’t true of all services though, and I believe that social aspects are the main driver of the winner take all effect.