Why Fund Twitter And Tumblr?

On the heels of last week’s news that Tumblr had raised a $750,000 round, some observers asked why Union Square Ventures would fund both that company and Twitter: After all, aren’t both services basically mini-blogs, and essentially competitors?

Nope, says USV’s Andrew Parker, who sets us straight in a post:

In the designing the best service to tackle their respective missions, both Twitter and Tumblr have become services that enable short-form expression. That’s why many people see Tumblr and Twitter as competitive services. But, this comparison is superficial and does not grasp the goals of each service. If Twitter succeeds in fulfilling its mobile communications goals, all the problems that Tumblr addresses will still exist; and vice-versa for Tumblr. So, in our opinion, these two investments are not competitive.

Next question: When do we get to see Tumblr’s overhaul? Vimeo’s Jakob Lodwick, who’s both a Tumblr user and an angel investor, made a bold promise about the site’s potential last week. We’re eager for a sneak preview.

Follow-up: Tumblr Valuation: $3 Million

Related: Tumblr Funded: $750k, Vimeo Tie-Up

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.