• August 6, 2008

Facebook has launched its latest fbFund competition to promote the creation of high-quality applications on the social network.

The contest awards grants of $25,000 to 25 application developers in the first round. Five winners selected from that group then receive $250,000 each. The grants are provided on the condition that fbFund sponsors Accel Partners and Founders Fund have the right to invest in these companies first in any future financing rounds.

Criteria for the awards includes originality, whether a market exists for a proposed application, whether it's socially useful, and whether it can turn into a real business someday.

The new app competition follows on the heels of Facebook unveiling the recipients of its first fbFund grants last month. They include ConnectedWeddings, GoalCamp, J2Play, Podclass and Zimride Carpool App.

Applications for the new fbFund are due Aug. 29, with first-round winners to be named by late September.--Mark Walsh