Investors grow wary of Internet startups

Posted: January 21, 2013 at 3:27 a.m.

David Sacks, chairman and chief executive officer of Yammer Inc., (left) speaks during an interview in San Francisco in March. Earlier this month, Sacks said tech startup companies need to do more to prove themselves to attract funding from venture capitalists.

Call it the Facebook effect. Until recently, investors had been all too eager to pour millions into any web startup with rapid growth, regardless of whether it made money or even had plans to do so down the road.

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Business, Pages 23 on 01/21/2013