New VC Fund Wants Only Facebook Apps

Venture capitalist Lee Lorenzen is so enamored of Facebook that he started an investment fund just to finance developers creating applications for the social network site. Not only is Lorenzen investing in a month-and-a-half-old industry, last month at a conference he said Facebook might be worth $100 billion, more than six times the $15 billion valuation that came with Microsoft's purchase of a 1.6% stake.

Lorenzen says people have asked him if he's drunk or on crack, and told him he's an idiot. "I view myself as this voice in the wilderness," he explains. He thinks that Facebook's recently introduced social ads, which link products with the names and faces of friends who've bought or endorsed them, will turn Facebook into a giant virtual mall. (More Facebook stories.)