I've previously been in the camp that there isn't a bubble. This seems like its a valuation of 1 or 2 hundred million for a company that hasn't launched yet. It's very hard to see how this deal could make sense in a traditional way.

Don't get me wrong I think this sounds like an excellent idea that could turn out to be an excellent company. It's just such a large amount of money to raise that it kind of raises the question of what game the VCs and/or founders are really playing.

It seems like at this point there might be a possibility of VCs planning on Facebook and Twitter going public and either being acquired at an inflated price with all that new capitalization or going public themselves in the wake.