We spotted David Karp, the founder and CEO of blogging-platform Tumblr, at Facebook’s headquarters yesterday.
We have a pretty good idea why the New Yorker is spending time out west.
Tumblr is talking to investors about raising another round of investment, two sources involved these conversations tell us.
Tumblr last raised money in 2011, at an $800 million valuation. It’s raised $125 million total.
Tumblr, which is ad-supported, generated $13 million in revenues in 2012. It spent $25 million during 2012.
Both figures are according to Forbes, which also says Tumblr will spend about $40 million this year, when it hopes to be profitable.
We’re told by one of our sources — a source close to Tumblr — that Tumblr doesn’t need to raise more money, but that it has gotten so much inbound interest from firms asking “what would it take,” that it finally decided to come up with an answer.
Plus, this source says, the market for fundraising has recently gotten much better than it was in the months following Facebook’s disastrous IPO in the middle of last year.
This source tells us that another reason Tumblr is considering raising more money is that it would like to be able to acquire companies.
The source says Twitter’s acquisition of Blue Fin labs earlier this year was the kind of deal Tumblr would like to be able to do.
We reached out to Tumblr, but did not hear back.