WSJ.com - Friendster Gets $10 Million Infusion For Revival Bid

"Friendster Inc., the pioneering social-networking company that has lost ground to newer rivals such as MySpace.com and Facebook Inc., plans to announce today that it has received $10 million in venture-capital funding, the latest move by investors to resurrect the company.
DAG Ventures, Palo Alto, Calif., is leading the round, with two of Friendster's original investors, Kleiner Perkins Caufield & Byers and Benchmark Capital, also participating. Friendster's valuation wasn't disclosed.
Friendster blazed a trail for social networking -- the idea of connecting with other Internet users via Web profiles -- four years ago. But as the San Francisco company struggled with performance issues, users ditched it in favor of new alternatives, including MySpace and Facebook. Last year, News Corp. bought MySpace's parent company for $580 million, plus a $69 million loan. Facebook, of Palo Alto, raised $25 million in a third round of financing in April that valued the company at $500 million, according to a person familiar with the matter."