Admit it. If you've got a MySpace or Facebook page, you've probably tricked it out with shiny graphics and picture slideshows using Rock You, one of the largest social media application companies currently operating. Don't be embarassed though—you're not alone. CNET reports this morning that enough people use Rock You's applications that the company has been valued at a whopping $400 million, and that it has raised an additional $35 million in third round investment. It's the kind of money, as CNET puts it, that may raise a few eyebrows, especially given the revenue shortcomings of many Web 2.0 companies—something we've written about extensively. However, VC firm DCM, who led Rock You's third round investment, says: "Rock You is postitioned to become a top ten Internet property in the world."

Not bad for a company that makes its money shilling sparkly pink text and superhugs to teenagers (and the rest of us).