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Digg, the news site with the nerve to substitute the votes of the unwashed, unpaid masses for the refined talent of professional editors, has raised a new round of venture financing, the company said Wednesday.Four-year old Digg, based in San Francisco, raised $28.7 million from existing venture backers Greylock Partners, Silicon Valley Bank and the Omidyar Network.
Today is a big day for Digg. We’re announcing a major expansion effort – the largest we’ve undergone in our history. With a new round of funding, we’re accelerating many of the programs that we’ve been working on over the past several months, including investments in infrastructure, new feature development, international expansion and hiring all the people we need to get there.
When we added the Digg link to our pages last year, no one knew who or what it was. We ended up removing it.
Good for them. Hope they can capilaize on it.
So did I read that article right, does Digg now use professional editors instead of the voting masses?
But how long before every community website has its own Digg clone script?
Also, Digg the Company is bigger than the Digg site. Digg Nation (the webisodic show) has a small, but very focused and "advertiser friendly" audience. They also have a number of other properties that are doing well.
Still, when I see $28.7 mil in additional funding to a company with only a vaguely defined revenue model, that old nineties phrase comes to mind - Burn Rate.
Maybe with 30something I have already reached the age where one starts to disconnect with new developments and technologies. Not very long and I will need the help of little children to install and configure my household equipment.
the sense of all this websites that carry a "social" in their description - social bookmarks, social networking, social whatever - escapes me. Total waste of time in my opinion.
No no no, this is so wrong! Adding "social" to website in this case greatly increases amount of money they can raise! Do you really think they'd get a $30 mln (after other investments) if they were not social web 2.0 blah -blah-blah money losing entity? :)
Wasn't there talk of ebay selling off stumbleupon recently?
This seems to contradict the trend.
[edited by: amznVibe at 2:20 pm (utc) on Sep. 25, 2008]
Automattic (WordPress, Akismet, Gravatars, etc.) got similar funding last year and it's still not apparent what they are doing with it. They seem to have doubled their number of employees recently though
Wordpress seems to be doing quite well in their blogging business. Many folks who can't host their own utilize their online version, which has many "pay per feature" options.
I think the Gravatar purchase was to save their own infrastructure of avatars. An investment in the stability of their product.
What I'm seeing now is just editorial comment on the big news stories, with stereotypic list-of-ten linkbait mixed in for good measure.
Is that really how it is these days, or did I just pick a bad day?
Digg on the otherhand is another story, the userbase is complete junk, they don't ever click on ads (most of them use ad blockers), they don't buy anything (promote warez/against DRM, support PirateBay etc). I have to give them one thing, the site is entertaining, people post funny/interesting stories on there and its a real traffic generator but in terms of making money, I don't think Digg will ever get there.
Shortly after that fiasco, this announcement on the funding. Something is up...
I'm dabbling in the Social Media thing now and I haven't made my way over to Digg yet, probably won't either. I like the smaller niche Social Media sites where there is still a chance to interact and not get caught up in the politics of it all. And yes, there are more politics in Social Media than there are in the U.S. Government.
$28.7 Million Dollars! That is nothing to sneeze at for sure. I think that money would be best spent revamping the entire voting model and bringing in some more bodies to get more of the human element involved. I think many are realizing that you can't rely on algos and automation to grow these types of communities, it doesn't work in the long run. Someone mentioned above that they are adding bodies to their staff, something is up and I'm sure we'll know soon enough. After the Digg Banning topics take a back seat to the latest news, I'm expecting another big announcement to come before the holidays. Everyone likes to do stuff towards the end of the year. ;)
[edited by: pageoneresults at 12:29 pm (utc) on Sep. 26, 2008]