Digg, which was supposedly going to get bought by Google but saw the deal fall through, has instead gone ahead and raised a $28.7 million C round led by Highland Capital Partners. CEO Jay Adelson talks about it on his blog, but this is a case where the press release is actually more helpful. It notes that advertising has tripled at the site in the last year, and has relatively detailed plans for the money:
The expansion represents the largest initiative in the company’s history and will include:
- Hiring the staff needed to accelerate Digg product and feature rollouts, including more ways to consume the over 16,000 stories and other content submitted to Digg everyday, deeper category and topic content views, and additional ways to discover and customise content;
- More than doubling the Digg staff within the next 12 months – from 75 today to over 150 by December 2009;
- Kicking off Digg’s international growth strategy and plans to expand Digg into other languages;
- Moving to a new larger corporate headquarters in San Francisco in early 2009 that more than triples the existing Digg headquarters space;
- Investing in brand and market development programs;
- Investing in publisher analytics and more sophisticated tools for publishers;
Digg has now raised $40 million to date. It raised $2.8M In October 2005 and $8.5M In December 2006. Previous investors Greylock Partners, Omidyar Network and SVB Capital reupped for this round.
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