Buzzfeed gets fed another $50m
Popular website Buzzfeed has been given a huge cash boost to take on the online media sector.
US news and entertainment website Buzzfeed has received a $50m cash injection from venture capital group Andreessen Horowitz, whose impressive online investment track record includes Facebook, Twitter, Skype and Airbnb.
The latest fundraising more than doubles the money Buzzfeed has raised to date. Set up in 2006 and famous for its listicles' (with titles such as 40 Things That Will Make You Feel Old'), animated pictures and videos, it now plans to beef up its video unit, offer more content, and open outposts around the world.
What the commentators said
So is it worth it? Buzzfeed gets 150 million visits a month, compared to the New York Times's 53.8 million, said Queena Kim on Marketplace.org. What's more, most of Buzzfeed's audience is under 35, "a demographic that's catnip to advertisers".
What it's really good at, said Felix Salmon on medium.com, "is placing its finger on the pulse of what people like to consume on the internet right now and creating the products they're going to love to consume on the internet tomorrow".
Much of its traffic now stems from social media sites. The trick will be to reach more of this audience with new editorial products and sell advertisers its expertise in doing so. In a sense, it will be creating, rather than just running, a web-based advertising campaign.
So it should be compared to advertising agencies, not newspapers. "Looked at that way it's downright cheap," said Salmon.