HuffingtonPost Raises Another $5 Million; Same Investors Including Pittman


HuffingtonPost, the uber-blog, has quietly raised another $5 million in a second institutional round of funding. The round included all previous investors: Softbank Capital, Greycroft Partners, CEO and co-founder Ken Lerer and Bob Pittman‘s Pilot Group personally (not through his fund, but personal investment). Earlier this evening USAT published a profile of Arianna Huffington, and casually mentioned that the company raised a total of $10 million…that’s what caught my eye and I confirmed through sources the second $5 million round which closed recently.

From the USAT story: the company feels the coming elections is its moment. The staff has grown from three to 43 full-time employees. And while it’s still a politics-driven, anti-war site, HuffPo wants to become an all-purpose digital newspaper, with recent new sections devoted to lifestyles, business, media and entertainment.

Of course, building on top of free, in more ways than one, helps: Co-founder Lerer says it has no plans to begin paying bloggers, the story says. Ever. “That’s not our financial model…We offer them visibility, promotion and distribution with a great company.”

Disclaimers: Greycroft also invested in our company, and we have a small headline syndication deal with HuffPo on its media page


Bill Lumbergh

Jesus, 43 people on the payroll. Raising money…"to pay their staff"… wow, who got suckered on this deal? Are founders still involved in the internets? I do read the HP but I bet Drudge doesn't have these kinds of overhead costs to produce what is essentially the same stuff…

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