So, you thought the social networking space was pretty crowded? Well, you’re right. It is incredibly crowded.

Doesn’t matter. Every VC must make a bet on a start-up that might — just might — be the next MySpace.

So we find out that San Francisco’s BV Capital has invested in the Xuqa.com, a raunchy (just scroll down the home page) college social networking company, where people set up their own profile page. Funding is reportedly $300,000, if you believe the Wag. But according to this table of the biggest social networking sites, it is doing pretty well (at No. 14). Company is pronounced “Zoo-kah.”

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Meanwhile, Silicon Valley venture capital firm Draper Fisher Jurvetson, invests $7.5 million into Santa Monica’s Tagworld, another company pretty high on the list of social networking sites (No. 11 biggest) where young people can build their own profile pages.