The decade-long glut of funding in the venture business is finally getting unwound as LPs get choosier and choosier about which venture funds to keep backing. Meanwhile, venture capitalists slogging it out

One of the biggest phenomena of last year was Formspring, a social site that lets you invite your friends to “Ask you anything”. The site launched in November 2009 and rose from obscurity to some 40 million monthly uniques at its peak (it’s currently at around 22.2 million monthly uniques according to Quantcast).

Today, the company is announcing a $11.5 million funding