Digg Raises $28.7 Million in Venture Capital

September 24th, 2008 at 12:00 am
 


digg social news rating venture capital raise series round cash infusion

Venture Capital Raising for privately held internet companies is always an exciting and inspiring activity.  Having investors infuse cash into a business for its development shows everybody, not only the company that the internet business is serious money and profits can be made with even the simplest ideas.

Social news site Digg has been around long enough and is already a major player in the Web 2.0 environment leveraging social media to deliver relevant news stories and other interesting stuff.  Digg is also one of the best examples of the social aspect of the web.

As most socially driven products on the Web,  they are privately held, making money off the ads they sell and the traffic they generate.  Venture Capital for these companies are always a bonus to their internal revenue which they use for expansion and development.  Of course with expansion and development comes new revenue streams which makes the investors happy.

Today, Digg raised their third round of funding.  Digg has raised $28.7 million in a Series C venture round led by Highland Capital Partners, and has in turn announced a major site expansion.

Jay Adelson, CEO of Digg, announced on the company blog that this new capital infusion will be used for expansion and new features.

"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."

Digg’s new Series C funding comes from Highland Capital Partners along with Greylock Partners, Omidyar Network, and SVG Capital.