Greylock Partners and Omidyar Network Plug Another $8.5 Million into Digg

Posted Dec 28, 2006

Kevin Rose’s Digg.com, the biggest user-contributed news aggregator website has raised $8.5 million in funding from previous investors of Digg, Greylock Partners and the Omidyar Network. Pierre Omidyar is a founder of eBay and the Omidyar Network.

According to VentureBeat, “Statistics have become a major sticking point for Digg, with the company saying in October that it has 20 million users, while conservative measurement sites like Comscore say Digg has a mere 1.3 million.”

Another interesting point that VentureBeat’s Matt Marshall brings up is that Digg limits the investors to insiders. Digg believes that it is the insiders that truly understand the revenue potential that Digg has. Insiders believe that Digg is worth so much that they do not want other parties involved.

Digg has recently revamped their entire user interface and implemented a new feature for videos users could view external videos directly on a Digg page rather than actually having to leave the website.

Currently Digg is ranked #76 on Alexa and #144 on Compete.com.