Re:Digg Raises $28 Million in Series C Funding
by kqr2 on Wednesday September 24, 2008 @05:12PM
(#314086)
From the article, it looks like Digg is plateauing. Consequently, they probably want to expand and are looking for cash infusion.
Or more cynically, management is looking for some way to monetize their current shares without an IPO or buyout in the near future.
Re:Digg Raises $28 Million in Series C Funding
by netcan on Wednesday September 24, 2008 @10:27PM
(#314429)
..but what’s troubling is that a mere 1 percent of its users (who can be labeled addicts) are generating 32 percent of the visits
I wonder why that is worrying? Advertisers generally want to concentrate their efforts & reach the same person multiple times rather then more people fewer times.
If they're using this money to cover operating costs for another finite period of time, it points to a failure of their business model since they aren't able to sustain their costs based on their revenue.
Digg has a wide reach, but they don't have great engagement of their users. Going off compete.com's data: Digg users hit 4-5 pages per visit and visit the site less than three times per month. So, their monthly uniques are high at 20-25M, but their total visits are low at 70M.
Digg is a decently impressive service, but community is hard. Google deals with hard issues, but nothing is harder to figure out than people.