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Summary:

Looks like the Technorati Monster has escaped again, gobbling up more cash… The perpetually “borked” blog search engine has raised another…

imageLooks like the Technorati Monster has escaped again, gobbling up more cash… The perpetually “borked” blog search engine has raised another $7.5 million of a planned $10 million fourth round, reports peHUB, citing a regulatory filing. The reported investors are return backers Draper Fisher Jurvetson, Mobius Venture Capital and FG Incubation. The funding brings the company’s total raise over four rounds to about $30 million.

Of course SF-based Technorati was basically the original player in blog search, but the company has struggled with competition (Google (NSDQ: GOOG) in search, and plenty of sites like Techmeme as aggregators), downtime, and an inability to effectively evolve the product. Last year the company changed CEOs and had layoffs. No doubt the site still gets a ton of traffic, and the brand name is well known — at least in social media/bloggier circles. From our perch, it looks like the backers are putting more money in, largely cause they have chips already in the pot.

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  1. Throwing good money after bad….
    :-(

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  2. the "Sunk Cost Effect Syndrome"

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  3. Great article. It shows how companies manipulate their value and raise finances when in reality the picture is completely different.

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