Dealtalk: What will be the next Instagram?

SAN FRANCISCO (Reuters) - Facebook's willingness to pay $1 billion to buy the 12-person start-up Instagram has Silicon Valley venture capitalists happily re-doing their math on the potential value of hot young companies. The fact that Facebook was the buyer is itself seen as a big plus for the valuation of startups that may be adding subscribers rapidly but in some cases are still far from being profitable or ready for the public markets. Until now, "it's really just been Google ," said Jeremy Liew, a partner at Lightspeed Venture Partners who backs LivingSocial and others. ...

Social Security posting $600B deficit over 10 years (AP)

AP - Social Security will post nearly $600 billion in deficits over the next decade as the economy struggles to recover and millions of baby boomers stand at the brink of retirement, according to new congressional projections.