Digg has Venture Capital – a few million bucks
Digg just received money from venture capitalists…
$2.8 Million of VC money for a start-up company who currently has a single revenue stream based solely on ad revenue. Granted I don’t have the full proposal that was presented to the VC’s that invested in Digg to see what type of future plans they have to build the site to something worthy of a nearly $3 Million investment, but I would really love to see the financials on this.
Truthfully if you ask me, the most likely strategic plan would be for them to attempt to grow their user base and develop their software to the level that they can sell it out to someone like Yahoo, especially since Yahoo has been on a Social Networking buying frenzy recently. But you never know how things could evolve, especially with a key player in Digg also being a part of Revision3. Possible buyout in the near future? This could always be possible, especially since people constantly seem to be under the impression that Digg and Revision3 are the same company, even though on numerous occassions it has been explicitly stated that they are seperate legal entities with no official affiliation to each other.
Either way congrats go out to the entire crew at Digg, and here is hope to more features and future expansion. In reality $2.8 Million isn’t a ton of money, but it is surely enough to begin to deploy some spiffy new features for sure.