It looks like Digg is getting serious about beating back some of the competition that has begun to crop up in the social news space. Yesterday, the company that pioneered the user-driven approach to news announced its third funding round, a $28.7bn $28.7m haul led by Highland Capital Partners of nearby Silicon Valley.
The move will double Digg’s coffers, allowing it to double its staff, move to a new headquarters, and expand overseas. Four years after its launch, Digg remains one of the most popular news sites on the web. But its vote-based method for deciding which stories to display on its pages has spread far and wide, with some large media names - most notably Yahoo, with its Yahoo Buzz site - getting in on the act.
The site claims 30m one-of-a-kind users per month, double that of one year ago. It said its advertising revenues had tripled over the same period, according to the news release that accompanied today’s fundraising news.
With well-funded competitors nipping at Digg’s heels, and with interest in the news spiking as the US presidential elections enter full swing, the extra infusion of cash looks well-timed.
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