Digg founder says economic meltdown prime time for Internet s...

Rose said he cut marketing costs by being Digg's front man and getting his message out in "Diggnation" podcasts delivered to iPod MP3 players through Apple's online iTunes store. === Hot micro-blogging service Twitter provides a cost-free way for startup founders to build followings and keep their fans informed. === Fledgling Internet companies can improve chances of getting attention by posting online blog commentaries regarding competitors or hot issues in the marketplace. === Computer servers and bandwidth can be rented to save young companies from having to invest in expensive equipment, according to Rose.

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Difficulty getting financing means fewer competitors entering the market and that there will be more media attention focused on young technology firms, Rose told those gathered at a Web 2.0 Summit in San Francisco.

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"Funding for consumer-oriented Web companies is going away and there will be a lot of opportunities out there."

Formidable social websites such as Digg, Facebook, and Flickr launched in 2004 when it was a "tough time" to get funding for websites geared to Internet surfers, according to Rose.

"We didn't launch during Web 2.0," Rose said, using a common reference to a second-generation Internet defined by online communities and user-shaped content.

"It is a very difficult time to launch new companies when there is a lot of other stuff going on."

News-ranking website Digg didn't face much competition during its first six to eight months, got generous coverage in the press and attracted a fan base of "early adopters whose time wasn't split with other products," Rose said.

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