According to insider reports, BuzzFeed may go for another round of funding – a huge $200 million to be precise. It will be its fifth round since its inception.
Unconfirmed by company
It is still not clear how far the talks have progressed, and it has not been determined as to who will elect to lead the round. It can be surmised that existing investors like Hearst Ventures, NEA, SV Angel, Lerer Ventures and RRE Ventures could participate. Inquiries were answered by company spokesperson issuing the statement that it was not the policy of BuzzFeed to make comments as a response to speculation and rumor.
According to the insider source, the $200-million funding figure is believed to be the median estimate. The funding may go above or fall below the line. The last round of funding by BuzzFeed in 2013 led to the company collecting almost $20 million. The rumored valuation at that time was almost $200 million. After its last round, BuzzFeed wanted to grow its video and mobile product range. It has collected about $46.3 million til date.
The list posts of BuzzFeed and its experiments pertaining to long-form journalism touched an audience, which the company described as about 130 million distinct or unique visitors in 2013. It reportedly got a few hits in June 2014: Facebook traffic to the website went down noticeably. In another negative development, Jon Steinberg, the site’s president and chief operating officer left the online firm for The Daily Mail, a British news site also noted for its entertaining reportage.
BuzzFeed is a website engaged in tracking trends. It is a start-up. The company is engaged in tracking and delivering content that attracts the most audience on internet. Although similar to Digg, it is not dependent on votes to find out a particular video’s popularity. BuzzFeed also tracks photographs and blogs on the web. It does so through a judicious mix of both proprietary algorithms and human editing. The two are used to determine the content pieces, which will subsequently go viral.
It generates about 378 posts per day. The posts are a composite of staff reporting, community reporting, cartoon artists and contributors. Popular formats include quizzes and lists. BuzzFeed video has original content created by the site’s own team and production studio. The social news website tracks and tests the customized content with its own team comprising of data scientists and also by its social dashboard.