Earlier this week, we pointed to the financial backers who’ve lined up behind social bookmarking site del.icio.us. Today, Union Square Ventures managing partner Fred Wilson explains what the firm sees in the tagging phenomenon and why it backed del.icio.us.

“Most people, me included, go there for the first time, look at del.icio.us, and then shake their heads and say ‘I don’t get it.’ But for those who come back and actually use it, the experience is very different. del.icio.us becomes a critical tool for them to manage their web experiences….In time it will become clear what the business model should be. And there are a number of them to choose from for sure.”

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