For the last year, two companies have seen the potential in social video(quick video clips that can be uploaded to various social media accounts and can be followed by friends.) Two main companies are battling it out: Socialcam and Viddy. Once Instagram was sold to Facebook for a billion dollars, all attention turned to both companies as the next big thing, the “Video Instagram.”
Viddy which is based in Los Angeles with investors such as Jay-Z, Will Smith, and Shakira, would be characterized as a media company. On the other hand, based at FoundersDen in the heart of SOMA (web 2.0 central) and backed by Valley heavyweights Tim Draper, Stewart Alsop and many others, Socialcam should be described as a technology company.
Rewind 2 months ago; it was a tight race between Viddy and Socialcam with Viddy having more users. Fast forward 2 months and Viddy is now having there lunch handed to them. As of Jun 29th Socialcam has 85,300,000 monthly users compared to Viddy with 18,600,000. What was once a close race has now moved into a thrashing. WOW.
How has Socialcam done it? Nobody puts it better than legendary Silicon Valley operator Marc Andreessen in his article “Why Software is Eating the World“.
That is why I moved here 4 months ago.